The imminent settlement between the 5 largest U.S.Banks and State Attorneys General will make it more important than ever for homeowners in distress to be represented by competent counsel.
A big part of the reason that the banks are signing onto this settlement, is that it will leverage the credibility of the Obama Administration and State Attorneys Generals to further their efforts to convince homeowners to sit on their legal rights related to legitimate claims they may have over lending and foreclosure practices.
Participating Banks are betting on the fact new modification promises may entice homeowners to walk away from real actionable claims against lenders, servicers and their vendors.
The settlement itself amounts to little more than moving around the deck chairs on the Titanic. The math simply doesn’t work. The principal reductions promised will either be spread like peanut butter over millions of mortgages, too small to advantage either the homeowner (or the lender) in any significant way, or at the proposed dollar allocation announced today, will only benefit a fraction of the homeowners facing foreclosure.
The proposed $2000 payment to families wrongly foreclosed upon is exactly the minimum that a husband and wife would be entitled to under a Fair Debt Collections Practice Claim. Those of us who represent homeowners know that there are state consumer protection claims and tort claims available that could provide wrongly displaced homeowners will tens of thousand of dollars more.
The silver lining in the settlement is that it does not in any way limit homeowner defenses or counterclaims in the foreclosure process. It is more important than ever for homeowners to be represented by competent lawyers. For more information about representation in foreclosure in Ohio click here.