Only 5 percent of underwater homeowners are likely to qualify for mortgage principal reductions under the recent $25 billion foreclosure abuses settlement, an economist with the Brookings Institution has calculated.
The recent $26 billion foreclosure abuses settlement has been getting a lot of attention, but time is running out to obtain relief under another action that could potentially help even more former homeowners.
A settlement that could produce up to $25 billion in mortgage relief for homeowners is in doubt after it was rejected by the California attorney general, who said the proposed deal doesn't go far enough.
Mandatory loan modifications and a fund to help reduce the principal on underwater loans are part of the price the nation's state attorneys general are seeking from mortgage servicers for settling the robo-signing controversy.
While the Nation focused on the contentious negotiations over the $700 billion bailout of the financial market a giant oak fell quietly in the forest.The FDIC seized Washington Mutual on Thursday afternoon, and immediately sold their assets to JP Morgan for $1.9 billion.