Details of the Government Foreclosure Deal

Monday, April 15, 2013

Stop foreclosures sign (Thomas Hawk/flickr)

As the government's largest effort to compensate victims of the banks' foreclosure practices comes to a close, ProPublica's Paul Kiel reports that it won't be much of an ending: roughly 3 million borrowers will receive no more than $500. He goes into the history of robo-signing and other aggressive practices that caused homeowners who weren’t behind on their mortgage payments to face foreclosure. His latest article is "For Most Homeowners, Gov’t Foreclosure Deal Brings A Few Hundred Bucks."


Paul Kiel

Comments [1]

Truth & Beauty from Brooklyn

I am a paralegal and was working at a law firm doing real estate transactions at the time all this stuff was taking place. I remember seeing people who made less than minimum wage being approved for $800K homes with 106% mortgages and telling friends that this was going to lead to a collapse - but I wasn't the one approving such mortgages and I wondered who would do such a thing. Once, a closing was scheduled in our office, and when the bank attorney arrived and reviewed the paperwork, he declared it was bank fraud, refused to do the closing and left the office. If only there had been more bank attorneys like him, maybe many more disasters could have been averted.

Apr. 15 2013 12:19 PM

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