Mortgage Debt Settlement Considerations
After a long battle over unlawful foreclosures and the mortgage debt crisis, a settlement agreement was reached just earlier this year.
As this news came as a good sign for homeowners, some aren't quite as impressed and many are even skeptical the settlement is sufficient.
The Debate Continues Much of the criticism made over the $26 billion mortgage settlement comes in the from the fact that a large portion of the funds are going to lenders, the same people who were considered to be the problem in the first place.
Designed to provide incentives for lenders to open up lending practices and offer foreclosure alternatives to borrowers they would have previously denied, the mortgage debt settlement funds allocated to lenders is quite a large sum.
In comparison to what homeowners victimized by the unlawful foreclosure practices will see in the way of restitution, the lender incentive money seems very generous.
Further, many states are either not participating the settlement and pursuing their own litigation against lendersor are using some of the funds for other purposes.
Many states have received their portion of the $26 billion settlement, only to toss around whether some of the funds will be used for balancing the budget.
If approved, some states could use some of the mortgage debt settlement funds to pay for education or road projects, government employee salaries or even government assistance funds.
This latest development has many homeowners concerned about the fate of their restitution checks and left with a feeling that the state is being unfair with the use of the money.
Instead, homeowners feel the state should be using the money to pay for foreclosure counselors and help support underwater or unemployed homeowners.
Not All Bad Where there is challenge and adversity, there also lies good.
Many states have used a significant portion of the settlement to help fund their own foreclosure alternative programs.
State programs designed to help homeowners find legitimate help with reviewing their options and securing a plan to avoid foreclosure.
Some state programs have even gone so far as to put on free workshops and seminars to educate homeowners and put them in touch with lending officers that can help design a solution to save their homes.
Although the mortgage debt settlement is far from perfect, it is a step in the right direction.
Further, any help is better than no help and this agreement could just be the foundation for major industry change.
Part of the deal has also created efforts to increase lending regulations and change lending practices to prevent unlawful foreclosure practices in the future.
As this news came as a good sign for homeowners, some aren't quite as impressed and many are even skeptical the settlement is sufficient.
The Debate Continues Much of the criticism made over the $26 billion mortgage settlement comes in the from the fact that a large portion of the funds are going to lenders, the same people who were considered to be the problem in the first place.
Designed to provide incentives for lenders to open up lending practices and offer foreclosure alternatives to borrowers they would have previously denied, the mortgage debt settlement funds allocated to lenders is quite a large sum.
In comparison to what homeowners victimized by the unlawful foreclosure practices will see in the way of restitution, the lender incentive money seems very generous.
Further, many states are either not participating the settlement and pursuing their own litigation against lendersor are using some of the funds for other purposes.
Many states have received their portion of the $26 billion settlement, only to toss around whether some of the funds will be used for balancing the budget.
If approved, some states could use some of the mortgage debt settlement funds to pay for education or road projects, government employee salaries or even government assistance funds.
This latest development has many homeowners concerned about the fate of their restitution checks and left with a feeling that the state is being unfair with the use of the money.
Instead, homeowners feel the state should be using the money to pay for foreclosure counselors and help support underwater or unemployed homeowners.
Not All Bad Where there is challenge and adversity, there also lies good.
Many states have used a significant portion of the settlement to help fund their own foreclosure alternative programs.
State programs designed to help homeowners find legitimate help with reviewing their options and securing a plan to avoid foreclosure.
Some state programs have even gone so far as to put on free workshops and seminars to educate homeowners and put them in touch with lending officers that can help design a solution to save their homes.
Although the mortgage debt settlement is far from perfect, it is a step in the right direction.
Further, any help is better than no help and this agreement could just be the foundation for major industry change.
Part of the deal has also created efforts to increase lending regulations and change lending practices to prevent unlawful foreclosure practices in the future.