Last week I wrote about the $25 Billion mortgage settlement. As this things always go, as time passes more information comes to light so I wanted to let you know what I’ve learned recently. The early negotiations were focused on the banks trying to settle with all the states, paying a big fine, but at the same time getting immunity for future claims, even if new information comes to light. This was one of the sticking points that was keeping the State of California from joining the settlement. That’s why I was initially disappointed when I heard that California had finally caved and joined in with the settlement.
I come to find out now that it’s possible that future suits and settlements ARE still possible, so the banks did NOT get the 100% immunity from future claims that they were seeking. This changes everything! So while I still think that this $25 Billion settlement is too small and didn’t go far enough, I also think we are going to see more settlements later, so there is still hope!
If you are a distressed homeowner currently, the hard question you have before you is whether you should take a loan mod now, or wait for either this settlement, or some future settlement, to come along and save the day. They keep talking about principal reductions, but so far no far-reaching, comprehensive program is even being considered. What if you take a loan mod now and get current, and then a program comes out 6 months from now that WOULD have helped you, except now your payment is “affordable” by their measurements because of your loan mod, so they turn you down?
If you would like a free, 30-minute no-obligation consultation to look at your situation, give me a call and we can go over your options. If you have questions on this or any other real estate topic, call me at (925) 240-MOVE (6683). To search the MLS for free and view virtual tours of homes for sale, go to: www.SharpHomesOnline.com. Sharp Realty