Robo-Signing Settlement is Historic: Not Without Controversy

Robo-Signing Settlement is Historic: Not Without Controversy

On the historic date of February 9th, the United States Justice Department released the details of a $25 billion dollar settlement they reached with 5 major banks. “The settlement occurred because the banks were accused of widespread use of “Robo-signing,” said Donna Tashjian, CDPE with Keller Williams.

Robo-signing is a practice employed by banks to automate the processing and approval of foreclosure proceedings against homeowners. “In many cases,” said Tashjian, “the banks were discovered to have processed thousands of foreclosures in a single day, all signed by one person.”

Donna Tashjian, a Certified Distressed Property Expert (CDPE), believes that the settlement presents a unique opportunity for homeowners who are in danger of losing their home. “The reality is, the banks would rather explore other options than foreclosure and this settlement gives them both the motivation as well as the funding to explore them,” said Tashjian.

Although the settlement is the largest government industry settlement since the $250 billion Big Tobacco settlement in 1998, there has been opposition on the grounds that the settlement does not go far enough to alleviate the $750 billion in negative equity in the country.

The participating banks are Bank of America, Ally, Chase, Citi and Wells Fargo. 5 billion dollars consisting of $2000 payments to borrows who were foreclosed on between Jan 1, 2008 and December 31, 2011 and who were subjected to the fraudulent practices. The other 20 billion will be used towards foreclosure alternatives. It is important to note Fannie Mae and Freddie Mac insured loans are not impacted by this settlement. Money will be distributed differently for the different states.

If you would like more information and contact numbers fore each of the lender, you may contact me if you wish. This is an important time as we all do our part to help homeowners avoid foreclosure. We bring tangible results with knowledge.

To your Success,

Donna

Where is the Real Estate Market Headed in 2012?

Where is the Real Estate Market Headed in 2012? On Thursday, Veros Real Estate Solutions released its VeroFORECAST real estate market forecast  for the 12-month period ending Dec. 1, 2012. Their findings indicate “the national housing recovery will continue to be gradual and slow without any significant changes in markets.” Veros predicts up to four percent appreciation in the strongest markets, including Fargo and Bismark, North Dakota; the Washington, D.C. area; Honolulu, Hawaii; and Anchorage, Alaska. Veros projects the five weakest markets—which include areas of California, Nevada and Florida—to depreciate five to six percent over the next year. While this is welcome news for the country’s strongest markets, the reality is, 1 in 5 homeowners are underwater on their mortgage. For many of them, the recovery isn’t coming quickly enough. Housing prices remain 33% below 2006 levels, so even at four percent appreciation, millions of homeowners remain in serious peril. There is opportunity to help many homeowners with foreclosure advoidance.  We would love to help you here in Grand Rapids Area and beyond. Please check out our websites or call for more information. To Your Success! Rapid Real Estate Team www.ShortSaleRRES.com www.RRES-ManageMyShortSale.com