Foreclosure Deal With Lenders in Key US States Nears Settlement

By on Feb 8, 2012 in Business, United States, World Comments
Tom Miller

Foreclosure Deal Lead
Negotiator Tom Miller

Image Credit: Iowa.gov

Foreclosure deal in California and New York took a headway as the two states moved closer of supporting the agreement, according to reports by several international news sites on Monday, February 7, 2012. A nationwide foreclosure deal has already been supported by over 40 US states.

The foreclosure deal reportedly aims to force the five largest mortgage lenders to reduce loans for about one (1) million US households. These five lenders who agreed to the settlement include Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial.

Reports say that under the foreclosure deal, the mortgage principal for about 1 million homeowners would be written down by an average of $20,000. About 750,000 Americans would receive about $2,000. The settlement reportedly apply only to privately held mortgages issued from 2008 through 2011.

During the previous negotiations, California Attorney General Kamala Harris described the proposed settlement as “inadequate.” However, on Monday’s meeting, officials now see “significant sticking points” that can be settled in the coming days. Harris said in a statement Monday that he is now “less concerned with the timeline than the details.”

Iowa Attorney General Tom Miller is leading the 50-state foreclosure deal negotiations.



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