Banks In $25B Deal To Settle Foreclosure Abuses

BINGHAM FARMS (WWJ) – Michigan is among 49 other states to receive a chunk of cash from a landmark $26 billion settlement from five banks for alleged foreclosure abuse.

Some borrowers in Michigan could get between $1,500 and $2,000.

“States across America have worked hard to present a united front in the fight to help stabilize the housing market in the aftermath of harmful mortgage lending and foreclosure practices,” said Michigan Attorney General Bill Schuette. “As a result, Michigan residents who were hit hard by this crisis will now receive assistance.”

Attorney Kenneth Gross with Thav Gross in Bingham Farms, who represents homeowners going through the foreclosure process, said the settlement is disappointing.

“We’re very disappointed with it, because I think the banks did a lot that they should be called upon to pay for, and I don’t think they are,” Gross said.

How will borrowers get their hands on the cash?

“I’ll research it and once it’s out there I’ll put it up on our website,” said Gross. “It certainly isn’t going to be something that somebody goes to hire an attorney to try and get this $1,500 or $2,000. I don’t see how they’re gonna come out ahead after paying attorney fees.”

“So, it’s gotta be something where you can exercises self  help and get it done.” he said.

The five banks in the settlement include Bank of America, Citi Group, J.P. Morgan Chase and Wells Fargo.

More on this story from CBS News


More From CBS Detroit

Best 4th Of July Concerts In Metro DetroitStaying home this weekend? Celebrate the 4th of July by rocking out at one of these shows.
Hump Day Drinks: 8 Cheery Cocktail RecipesNow that you've made it through half the work week, it's time to celebrate!

Watch & Listen