Thursday, February 9, 2012

VIDEO: Virginia AG Ken Cuccinelli Explains Why He Signed On To National Fraudclosure Settlement

The Virginia Attorney General discusses what would have happened if Virginia wasn't one of the 49 states agreeing to the $25 Billion Robosigning / MERS Abuses / 5 Big Banks Settlement.  Cuccinelli accepted $479.6 Million for mortgage debtors who experienced foreclosure fraud; after losing the home, these folks will receive $800-$2,000 maximum payment over a period of three years (you read that correctly). 

For other folks trapped in their homes, the settlement money may also be used to cut principal by up to $20k and refinance mortgage debt.  This could impact up to 15,000 homeowners who owe more on the mortgage than the property is worth.  Almost 30% of mortgageholders in Virginia have negative equity.

Attorney General Ken Cuccinelli

This settlement may help some people stay in their homes, and it will enrage many others.  It is not going to "help" the housing market find its bottom.  

From CNBC: Rochdale's Dick Bove on the "Mortgage Deal From Hell"

The WaPo has details of the settlement.

No comments: