The foreclosure-abuse settlements between the federal government and 10 national banks will begin to be sent out over the next three months, according to a recent report in the O.C. Register. All eligible homeowners will receive payment whether or not they have applied for a foreclosure review. Even better news, eligible homeowners are not required to prove any malfeasance on the part of their lender. These banks, which include giants such as JP Morgan-Chase, Wells Fargo and Bank of America, have agreed to disburse over $3 billion to nearly 4 million affected borrowers. There is an additional $5.2 billion earmarked for loan modifications and other easement programs for those impacted by the foreclosure abuse.
The program has not been without some hiccups along the way. In 2011, at the onset of the program, over 4 million letters were mailed to property owners and purchasers who may have been affected by foreclosure abuse. However, there were a number of issues with this round of letter. First, they were written solely in English, which made it difficult for non-English speaking parties to decipher the intricacies of the process. Also, the design and layout of the notices made it look like some kind of advertisement or offer, resulting in many owners simply throwing the notice out because it did not appear to be an official government dispatch.
As a result, affected homeowners will now be contacted by a third-party, which is still being assembled. Regardless of the bumps in the road, the pending program is welcome news to Orange County residents as well as homeowners across the nation. It’s further proof that the real estate industry continues to recover. The settlements and loan modifications will not only stabilize the market but create new opportunities for sellers and buyers looking for Irvine real estate.
I have been helping people buy and sell homes in Irvine for years and would welcome the occasion to tell you more about the amazing properties available. Give me a call today to hear more about this settlement program or to chat about Irvine real estate in further detail.