It happened a couple of weeks ago. Settlement for the Robo-Signing debacle. 25 Billion dollars to assist in the housing/finance mess. Well, hmmm, that's a little short for the 750 Billion dollar mess we are in.
Regardless, this post is to help explain it a bit to the people that read my blog. That count on me for some help in understanding what is happening in their Real Estate world of Santa Clarita Valley.
First, it's a 3 year plan. Nothing going to happen overnight. And, if you are backed by Fannie, Freddie, or have and FHA loan, this doesn't apply to you.
5 billion will be paid out in 2k increments to the people that were 'Robo-Signed' into foreclosure. Okay, so, there were several Linda Greens signing. Those people still were in default....just sayin'.
10 billion is to assist people that are delinquent via load modifications and possible principle reductions.
3 billion to help underwater homeowners that are still current on their mortgage.
7 billion to help distressed homeowners via forbearance, relocation assistance (think HAFA), and Short-Sales.
There is a website called National Mortgage Settlement you can find via my website : My Personal Website ~ KeepYourWitz.com Click on Robo-Signing Settlement on the toolbar near the top. It has a lot of information, more than I can provide here. Will help determine if you are a candidate and more options for you.
Wells Fargo has is the first one I have read that has laid out how it is supposed to work. Wells Fargo Explains How It's Going To Work It's a great little piece. And, I'm sure we will see more.
Great, we've got a little bit of money going around. Now, that they have had their hand slapped, there are more guidelines to follow.
I do think that there will be more incentive to expedite short-sales. We know that it costs more to the bank to foreclose than approve a short-sale too. Whatever the banks earn the most credits on, i.e. whatever they lose the least amount of money by doing....is what is going to happen.