The Obama administration is solidly backing the mortgage modification aspect of the settlement proposal made 50 state Attorneys General to the "big 5" mortgage companies. In what has been described as a "shock and awe approach", the Administration is said to be seeking to force those mortgage servicers to reduce the monthly mortgage payments for roughly 3 million struggling homeowners and is seeking that remedy within the next 6 months!
Industry insiders have estimated that such a proposal could cost the companies as much as $30 billion. The effects of a settlement like this could be extremely far-reaching, with an estimated 4.7 million delinquent homeowners nationwide who have not been served with a foreclosure. The five largest mortgage companies handle 3 out of every 5 U.S. mortgage loans. The Obama administration remains in support of mortgage modifications where a reduction in principle is present, a method that experts believe is the most effective way to modify a loan.
While this is good news, any deal on a potential settlement of "robo-signing" and other mortgage abuse claims is still far down the line. If you are facing or will be facing a Florida Foreclosure Lawsuit, contact a Florida Foreclosure Lawyer or a Jacksonville Foreclosure Lawyer today.
