Foreclosure Document Errors, Robosigning | featured news

(Image from article: "Victims of improper foreclosure practices can submit claims")

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Analysis: Banks largely reserved for U.S. mortgage pact cost

As the nation's five largest mortgage lenders edge close to a $25 billion settlement over foreclosure abuses, it's becoming clear that the deal will have little or no impact on their future bottom lines.

Victims of improper foreclosure practices can submit claims

Fourteen mortgage servicers have begun mailing out 4.3 million letters to potential victims of robo-signing. The letters will invite borrowers to submit their cases for a free review by independent consultants. Aggrieved homeowners ensnared by a foreclosure system riddled with misconduct and error are set to get their first shot at winning some cash back from the banks.

Senh: At least some homeowners might possibly get some money back from the banks, but I'm not sure if this helps the housing crisis much. If banks can settle with homeowners of improper foreclosure by lowering principal and/or refinancing loans at current low rates, then it would. But I doubt banks will do that.

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