Principal reduction plan for struggling homeowners could be part of settlement between lenders and states

Today, Bondi wouldn’t comment on California dropping out of negotiations except to say that she has no plans to follow suit.

“It’s a bi-partisan effort because we want to get every penny back for our state that we can,” Bondi said.


Yea, the state…

What about the PEOPLE of the state?

Oh, and Lisa has a great quote at the end of the article…


“We expect continued disappointment from Florida Attorney General Bondi who continues her allegiance to the banks and their lawyers,” said West Palm Beach resident Lisa Epstein, who founded the blog


Principal reduction plan for struggling homeowners could be part of settlement between lenders and states

Florida homeowners facing foreclosure could see their debt reduced by banks under a proposal being negotiated this week by state attorneys general.

In return for cutting loan balances, banks would pay less in penalties for foreclosure and mortgage-related wrongdoing.

The principal reduction plan, which is being discussed as part of a settlement agreement between lenders and states, would accompany a second program that would provide funding to states to pay for their own foreclosure-rescue activity.

The possibility of banks lowering loan amounts was revealed today in the wake of the abrupt resignation of California Attorney General Kamala Harris from the core team of attorneys general negotiating the settlement.

Harris was one of eight attorneys general, including Florida’s Pam Bondi, on the team. She said Friday she was cutting ties with the group because the proposal doesn’t go far enough to help homeowners or punish lenders.

Check out the rest here…


35 Responses to “Principal reduction plan for struggling homeowners could be part of settlement between lenders and states”
  1. Alison says:

    Traced my whole chain of title and satisfactions and transfers, two left and they were given to MERS. Now what?

  2. housemanrob says:

    …just watched Morning Joe interview with Gov Rick Scott and ………….I swear he acts like he is high on meth……talks so fast… can’t understand half of what he says……….his eyes are popping right out of his head……he looks 10 yrs older than he did 3 yrs ago…..methinks his health is failing, he may not notice….especially if he is doing amphetamines!

  3. I vent…Is this something that will be forced on the people ? If you don’t sign for it…will that mean the banks will have the rights to take the home ? All I see is pure up roar and the fires will burn if these fraudulent contracts we now have for our homes are not given the due process of our given rights. I, myself, find this has gone on long enough….this all was planned from the beginning to defraud the people…they got caught…just as a bank robber…and must face prison. It was a gamble they took and lost…now it is time for them to be given their just punishment. Not a fine, not more lies and cover ups….PRISON…..This is not a one time crime…it was done millions of times over…premediated….stop the ass kissing and let justice be done…the legal way…this massive crime was done deliberate….and if all this crime was done with orders from Rome than the world has the right to find the culprits…and give them their just punishment. I am so sick of hearing all this bullshit of looking for more ways to screw the people…..WAKE UP…SHUT, ABOLISH THE FEDERAL RESERVE AND PETITION WASHINGTON….frig the election….they are all one and the same running for office… blood is needed….to rid the snake ..the whole body must be destroyed….this cannot continue. …it is one scam after another…….

    • lvent says:

      Right Marilyn. Imagine someone loans you their money to fund your whole business and then you collect money from them, charge them interest on their money……invite investors to invest in those fraudulently induced payments,then you discover you took on too many investors and you have accumulated too much debt, so you steal the lenders pension money, get a bailout from the person who lent you the money in the first place, and then you decide to stop paying the person who lent you the money in the first place, then you turn around and take them to court and a judge lets you take their home to pay for your debt……THAT IS WHAT THEY DID….LOCK ‘EM UP!!!

      • lvent says:

        Don’t let me forget, you and your investors insured yourselves on the risk of your own default to the tune of 2-3 times the value of the loan…which you knew you could collect after you bankrupted the person who lent you the money in the first place… and you could collect that money after you got to steal their home…..DESPICABLE!!!!

  4. talktotennessee says:

    So far every modification of any consequence has required re-qualification. This will not ever work. Most people are not able to requalify to stricter standards, DUH!

  5. Gordon Brooks says:

    Two questions:

    What about those of us who’ve already lost their homes and most of their money?

    And who says the banks, acting as servicers for loans nobody can prove they own, have any authority to reduce the principle in the first place?

    • Leon says:

      I think you can join the class action law suit against corrupted Mortgage’s related banks this bank s go to they well know for complicated litigation may be you get some of your loses back who knows but at list you try …

      • Class action lawsuites are expensive and the break down of any settlement after lawyers and all costs are paid first…leave very little for each person in the lawsuit. I have read more against class action lawsuits than for them…..some on this site have expressed their opinion and break it down to pennies on the dollar….one person said their share was $7.00 in a class action lawsuit. I know from personal experience, my husband lost a 20 year pension plan with a large firm…with all employees in the lawsuit…took years to settle and he got $136.00 settlement on a pension plan…..the winners are the lawyers…not you.

      • Gordon Brooks says:

        I agree. The only people who make out on class action lawsuits are the lawyers, and the settlement is likely to be pocket change to the banks, who consider such settlements (no matter what they say publicly) as a cost of doing business.

        I don’t really need to have my house back. And although I could really use some of the money they stole, what I really want to see is bankers in jail.

  6. Bruce says:

    The government will talk about the billions of dollars that the Banks will be “paying” in the form of principal reductions. They will not talk about the numerous fees and charges and interest that has accumulated while the Bank has refused to accept payment while reviewing the loan modification application. If the principal reduction is $30,000 per homeowner then the fees applied to the loan in default will be $35,000. In exchange the Banks will get some sort of whitewashing of all the title problems and the homeowner will be right where he or she started.

    Why do you think the Banks are so quick to resolve the litigation when the homeowner hires an attorney who treats foreclosures like real litigation?

    • Fury says:

      don’t forget that you would have to pay taxes on the principal reduction/new loan creation.

      you would have 2 loans to pay off.

      the states AG plan stinks!

      we need FULL RESTITUTION for everything we lost due to fraudclosure crimes.

      • Leon says:

        Fury don’t worrier you can sue them after you get your principal reduction and then get lot more money back and a free home . believed me i seeing it happening the banks are all idiots they will go bank erupt ..all the mess they got in to ,, they are not even making money with the stock market because their stock’s are worth less …..look at Bank of america again their stock is 5$ now …this banks are worth less ..I had 400k account with then and i took it and brought it to PNC

      • Leon….In this principal reduction plan and new loan creation… a waiver is signed by you to waive the right to sue the bank on the old contract…you sign away your rights to sue. First the bank will have to prove to you they own the ‘ old ‘ loan/mortgage…this will be up to you to make them prove it…and they can’t prove it. Many people do not think to make them prove. BUT the bank does not forget to get your SIGNATURE on the waiver that you cannot sue them….Any reduction of money is reported to the IRS and this must be claimed as money gained, As far as I know…the fees and all charges are added…not forgiven, to the new balance oweing before the principal balance is lowered….And who would even consider this ‘ modification.’ ..the banks cannot prove they own the note/mortgage…all this is you are making a new contract with ” A ” bank….and waiving the rights to sue….and giving them YOUR SIGNATURE. WAKE UP…ANOTHER SCAM LURKING IN THE BACKGROUND…REMEMBER…their plan is to own all the homes….everyone homeless….this is another set-up for all to fail………don’t be a fool and fall for it…FIGHT FOR YOUR RIGHTS…

      • lvent says:

        Best bet, don’t sign anything…find the fraud in your fraudclosure and file a motion to dismiss without an attorney…can’t trust em…. on the grounds of the foreclosure fraud..there is fraud in every fraudclosure…Altering docs and forgery is a felony in every state….look up the statute of frauds in your state…..Fight the good fight!

      • lvent says:

        Remember, they never lent you any money so there is fraud in every fraudclosure! They are all pretender lenders!!!

    • Leon says:

      I think billions of dollar bank will pay to settle but also they are going to deal with people they already lost their home that can be considered or may be return their home back since they foreclosed were illegal that is an other wave of lawsuits .. that title insurance may have to deal with in the future was is proven the robot singing was all illegal or home were foreclosed complicated but you have good attorney who can fight it for you ..

  7. tonycat says:

    What about the title problem? Are we going to have all us homeowners pay for 30 years on a new mortgage that we still will not have clear title to the house when the payments are all made? Why is no one addressing that problem, the securitization and failure of the notes to attach to the mortgages? What in the world can we do to get these fraudulent mortgages off our homeowners’ backs?

  8. Albi says:

    Bondi is BAD NEWS! Why do we Florida consumers not have a “Recall Bondi” petition campaign in the works? It’s long overdue. BONDI IS IN BONDAGE TO THE CORPORATE MAFIA. She needs to go.

    • Leon says:

      right now my friend anything that has to do with government is bad news ..they all work for them why they should helps us !!!!

  9. Gravin Harnson says:

    Fannie Mae is sending more sleaze to take your houses, that’s right, just sit there, do nothing. The Government is, has, and will be in on this, from the start, to the finish.

  10. housemanrob says:

    ,,,,,someway……..somehow…..this bitch…..Bondi…….has got to go!

  11. Tee says:

    Ya know, what is it with Bondi? All the evidence of massive fraud is everywhere? It slaps her in her face every day??The cats been long out of the bag……who’s a** is she licking?? Like usual its someone in hiding thats letting her do the dirty work. Is she just one of these attention craving individuals who has to go the opposite way to become noticed. What is her major problem?? Deadbeats?? What??

    • Leon says:

      Forget Bondi she works for the sopranos sue this damn banks and get lot money out them before they go broke ..

    • tee… BONDI… far has proven she is on the Mortgage Bankers Assoc. side of the fence….she has called the homeowners ‘ deadbeats ‘….and made statements about not making the payments..just want a free house…..Her office is investigating firms that paid money into her election fund….is that not Conflict of Interest ? Do you think an honest investigation is being done ? Why would she bite the hand that feeds her ? Instead she has a cozy relationship with them……follow the money given her…

  12. lvent says:

    An attorney warned me this was coming….AN ALL NEW MORTGAGE AND NOTE..with a soft side note that amortizes later on in the loan..Buyer beware!!!..At the begining of this mess an attorney I trust told me this debt is unsustainable and there is no fix for this..All of this b.s. is just another set up to fail later on. When this fraudulently induced “loan” fails because of the mess these crooks created you will lose your home in short order….There will also be a WAIVER in the SET UP for you to sign that will state: SOME RESULTING AGREEMENTS MAY REQUIRE THE CLIENT TO WAIVE ANY RIGHTS TO FUTURE LEGAL ACTION WITH RESPECT TO THE ORIGINAL MORTGAGE LOAN AND SUBSEQUENT MODIFICATION. CLIENT IS ENCOURAGED TO CONSULT WITH AN INDEPENDENT ATTORNEY REGARDING WAIVER OF THAT RIGHT IF AN AGREEMENT IS OFFERED WITH THIS LANGUAGE…….

    • lvent says:

      I just want to add that the attorney who informed me this was coming is an Ancient and Free Mason…I found this out on the internet when I researched him…..He told me some truth than in the end, he hoodwinked me and pulled out the HUD contract….I watched an interesting Brad Meltzer’s decoded this morning entitled, “White House”….it is about the Fremasons and how they are all in on the Global New World Order conspiracy…for World Domination…Check it out if you is being rebroadcast today at 4.00 pm cst. or maybe google it…It is worth watching for sure since we are living the culmination of the biggest conspiracy known to man…Know your enemies..

      • lvent says:

        I would also like to add that a while back ago I came across a website or two that claimed Obama is a Prince Hall Freemason…That would explain the HOODWINKED part of their motto which is a symbol of secrecy, silence, darkness and deception…Like Black is White and White is Black….Hope and Change we can believe in..and Yes We Can…That is why I say we also need an amendment to force these politicians to sign a contract with WE THE PEOPLE, that if they are elected, they are swearing to uphold their promises and our U.S. Constitution or they have to resign…..

    • housemanrob says:

      Vent, We all know…..there is no such thing as a modification……they just want your very valuable…..SIGNATURE!

    • John says:

      Who would you sign this agreement with?

      if noone can prove you owe them any money you would be a fool to agree to pay any company that doesn’t have the proof you owe them.
      Demand the proof before signing anything.

      If not, I say you owe me so send me whatever you want as I will take all I can get. This example is what they are asking you to do.

      • John…This new loan creation is just another scam to cover up the frauds…You must sign a waiver of your rights to sue them…..this is nothing but a glorified version of ‘ modification ‘….read I vent’s comments above….it is another scam. She has the copy of the application and the requirements…..

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