Mortgage companies agree to huge settlement in foreclosure abuse

| Jan 16, 2013 | Mortgage

Lending companies provide people with money to purchase homes based on the belief that they will be able to repay the loans on time. They charge interest on the money borrowed and assign fines for late payments or bounced checks. But companies that offer mortgage financing may also cut corners, which can hurt Worcester, Massachusetts, residents.

Unfortunately, families have been thrown out of their homes and have lost significant amounts of money in the process. Regardless of the size of the lender and how many clients they are dealing with, lenders have a responsibility to treat borrowers fairly. Too many people are losing their homes because of lenders’ actions.

A related scenario played out in court recently, when 10 of the leading mortgage companies in the United States settled with the federal government for $8.5 billion in an action that will help reimburse victimized borrowers faster than going through an ill-fated foreclosure review program. Individual case review has already cost $1.5 billion and has resulted in no direct payouts to homeowners whose homes were taken in unfair foreclosures.

Critics of the recent judgment claim that mortgage companies will wind up paying less in the long run and that some homeowners’ claims will go ignored. Proponents state it will streamline the process and deliver funds faster to more people than the previous plan.

Consumers in Worcester currently struggling with mortgage lenders who aren’t abiding by their own terms have learned to act quickly to receive relief. Methods are in place for accessing affordable mortgage refinancing, fairly managing delinquent payments and finding ways to avoid future mortgage issues.

Source: NBC News, “Banks reach $8.5B settlement on mortgage abuse,” John W. Schoen, Jan. 7, 2013