Foreclosure Settlement’s Value Hinges on California’s Participation

Foreclosure Settlement’s Value Hinges on California’s Participation

As the national settlement talks to resolve mortgage companies’ wrongful foreclosures inch towards a conclusion, the size of the deal hinges on California.

Starting Wednesday and continuing throughout the remainder of the week, negotiators representing 50 states attorneys generals and the Obama administration are distributing to all parties documents outlining two possible deals: one based on California’s participation and a second, smaller one, based on California’s absence, said sources familiar with the discussions. The documents provide a hard number for each state’s share of the settlement and also an estimate of the potential benefits to homeowners under both scenarios. California, which has the nation’s highest foreclosure rate, is one of a handful of states that have threatened to leave the deal over concerns that the settlement is too soft on banks.

That California’s participation could sweeten the terms of the deal reflects the important role that this state plays in any settlement. As part of the settlement, participating states will agree not to pursue various claims against the lenders in the future. California, which is not only a large state but has been ground zero for many of the wrongful foreclosures, represents significant future liability for banks. Thus, the lenders are more inclined to offer a greater sum to ensure that California will not pursue claims against them down the road.

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17 Responses to “Foreclosure Settlement’s Value Hinges on California’s Participation”
  1. Shelley says:

    The rabbit he would have to pull out of his as* would have to be one that protects the victims the investors and homeowners, not the banks. He will be offending millions of voters and will lose for sure if he supports the banks. To many people are watching and aware of the bank crimes. To support the banks will be the end of his career. 99% against the one percent! Has he cracked the numbers. The only way he will make a second presidental election is if he takes over as a dictator.

    • lvent says:

      Does our vote even count?…looks like we are all going to have 2 choices…and I am not liking either…so I am going to write in my choice for President….This is supposed to be a democracy right?

      • lvent says:

        Are we really going to let them get away with telling us who we can vote for again? They are telling us we have 2 choices….heart disease or cancer….I don’t want either…

  2. Ali says:

    I think that Obama is sticking his nose into State’s buisiness is two-fold 1) Money for his re-eclection and 2) Thats the rabbit he’s gonna pull out of his ass to get re-elected.

  3. Have we forgotten that Govenor Brown while the At.Gen. already went after Countrywide and won a large settlement for homeowners, I was and still am so greatful that he went after them and won; however having said that, they didn;t help with any modifications, and the monies I never saw any of it, What makes all of this so difficult is every situation is different! Whether you lost a job, ill, or just plain taken advantage of, or just the market flopped, doesn;’t matter everyone is treated differently. So far the single home owner is supose to have priority, however alot had NO SKIN in the game, if that matters, then some had far too much skin in the game; most recently after my final try to keep my original residence; I was approved for a Hafta short sell, 2+ yrs?? my health has been harmed without sounding too winney; the first loan the balance is forgiven, stated balance due while trying to modify was 596,000 FEES!, all of a sudden for the new persons it is 498,000?? the second loan was reduced to 3,071?? from 51,000 although listed as 60,000, in figuring the interest only, it had been paid in full at least once, the sell of my home is 174,000; so here I fluffed, and painted and took care of my home like a newborn, and from purchase price of 620,000 with 20% down and numerous upgrades and maintaining it move in ready to show! the buyers(investor) made an offer and hammered my agent and Bof A until then excepted miimum with all fees included in total, comes to 200,000 forget that the appraisal was higher, and yes I get $3000, to move; check is in the mail? without that I will have too leave everything! I +am grateful for all of the outcomes, however it certainly didn;t need to take 2+yrs, and had they lowered the payment from 6% to 2% I would still be current, they have reported daily non payment, my credit is ruined, at 63 on fixed income due to injury will never ever re coup the monies spent,’ owning more than one property, and all are in the same situaton!
    Typically after signing no one is available to assist as to how much time to move, just told it is in the mail, hopefully by Monday, by the way, we already closed and you need to be out today?? and B of A Servicers do not return calls, and my Countrywide, Bank of America, Wells Fargo, Bank of America, Wells fargo, Federal, and now I am told Citibank owns the loan???? Suing the banks!! it is only paper to them, all of the money will not bring my credit score back, my homes back, and most of all the emotional and spirit and faith in the banking system and our government to protect those of us who try to do the right thing, I am so glad my parents are not here to see me lose everything I worked for along with whatev3er they left me, and thank God it is just me and Onyx! Where I live it is mostly young families with children, dreams are broken, and we are supose to be naive enough to think renting from the people that helped put us here is the answer?? I rented until I was about 50, raising 2 children alone; don;t think for a minute that home ownership isn;t better for raising children! than renting! Once again they asume we are all uneducated!! Someone in Congress needs to get some street smarts, maybe they should move their children to a few rentals and while they are at it, try getting ill and using our medical coverage!!! Hope someone of substance is listening

    • lvent says:

      The money from these suits always disappears….!

    • Bobbi Swann says:

      @ RuthAnn – I am sooo sorry for all that you have been through! I am close to your age and I can certainly understand. I have raised my children alone in my home and I have been here for well over 25 years. I just wanted to reach out to you so that you will not feel alone. Being here in Florida, in one of the states that is so corrupt is just painful all by itself. I can certainly understand the emotional rollercoaster you have been encountering.

  4. readdocs says:

    What is needed is a nationwide group like this covering ALL .

    • lvent says:

      What is needed is for America to ABOLISH THE FED and break up their giant corporate monopolies….make wall street financial firms have skin in the game… Glass-Steagall or nothing will change..!


    Barry Fagan v Wells Fargo Re Two Expert Opinion Declaratio­ns Concerning Wells Fargo Document Fraud & Robosignin­g of Rhonda Bernard Thomas Signatures


    Barry Fagan v Wells Fargo Re: Motion to Compel with an Expert Opinion Declaratio­n Concerning the Robosignin­g Signature of Rhonda Bernard Thomas


  6. To tell the Truth says:

    Well, where do you think Obama will get his campaign billions from? Do we really beliee that the grassroots donate those almost billion last campaign? MMMM

  7. lvent says:

    WTF is the Obama administration doing sticking their nose into this? I was told last year by Senator Durbins office that there is nothing Obama can do to halt fraudclosures….it is a State issue….so if it is a State issue…tell Obama to stay out of it! There should be no settlement for fraud anyway….only handcuffs for these criminals! The AGs office will be aiding and abetting these criminals if they agree to anything less than a recommendation to the States Attorneys that they all be criminal indicted..!

  8. Tien says:

    is any body have case No: for TREVINO et al v. MERSCORP. please let me know

    Thank You so much for your information

    • Killer Bee says:

      It doesn’t matter what they do, a nation-wide lawsuit is coming soon, in fact, it would be easier to file suit as their complacency only details the existing corruption between the government and the banking industry… just stay tuned.

      Such organization (the suitor) has been in the making for well over two years.

      Lets see what are they going to do against 10 million plaintiffs.

    • Bobbi Swann says:

      @ Tien – the law firm representing the suit emailed me. They have settled…..but no details on the settlement as it has not yet been approved by the courts. His email address is:

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