They are here with us, and will be in the news for the next few years.
First – lets put the last few years in perspective. Over 2 Million people have lost their homes to foreclosure since 2008.
The lenders know that some of those foreclosures were completed with less than stellar paperwork. That’s why the largest servicers agreed to a $25 Billion payout in the settlement last week. I use the term “payout” loosely.
If you lost your home to foreclosure in the last few years, and can prove any type of mistake in the foreclosure process, there is $1.5 Billion that will go into a trust fund to pay others like you. There are estimates that up to 750,000 people will receive a check for $1,500 to $2,000.
“Sorry you no longer have a home of your own, here is a check for $2,000.”
That makes some people upset. The LA Times had a pretty good article last week about the settlement here.
You can also find the link athttp://articles.latimes.com/2012/feb/11/business/la-fi-hiltzik-20120212
Second, lets talk about the current situation.
There are estimates that over 4 Million people are still at some risk of immediate foreclosure, and closer to 11 million more are underwater on their mortgages.
When I talk with banks and attorneys across the DC area, most agree that we are 2 or 3 years, and some are saying as much as 5 years, from real resolution to this mortgage situation.
I tend to agree. In the servicing settlement last week alone, the banks have up to three years to implement the entire plan.
Some people are upset with the pace that these banks are proceeding. Some homeowners are choosing to fight for their individual situations. Most people outside of government agencies are upset with what appears to be lopsided settlements with the largest lenders, banks and servicers.
And as always, let me know if I can help with your real estate investing here in the DC area.
See you on Monday!
Washington REIA Network, President
Profitable Property, Founder
Register early for the Feb. 27th WREIA meeting online, and skip the registration line!
You will also find the registration link at http://feb2012-wreia-wreiacom.eventbrite.com