Robo-waving, not Robo-signing
It was announced today that the Robo-signing suit has come to a settlement.
What is Robo-signing?
Robo-signing is the term coined for the bank’s practices of quickly signing foreclosure documents without actually reading them, or using fake signatures to sign the documents.
The settlement was for $25 billion, which will be divided between all 49 states that signed the original agreement. Oklahoma is the only state who did not participate in the agreement.
These settlement fees will provide three main services.
These services include helping homeowners get loan modifications now, on both first and second mortgages. It will also help homeowners who are current, but underwater to refinance at today’s interest rates (much like the Fannie and Freddie plans I would assume). Finally, People who lost their homes to foreclosure will be receiving some compensation.
This process is going to take time to complete (as there are a LOT of underwater and distressed properties to work through). Over the next month or two, an administrator will be assigned. Over the next six to nine months, the three main services will start to be implemented – loan modifications, refinancing, and payouts.
It’s expected that this process will take at least three years to be completed.
To read more, check out THIS.
Image courtesy of happykanppy / FreeDigitalPhotos.net
