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

  • Michigan Expects To Get $790M In Foreclosure Deal « CBS Detroit

    […] Officials say 49 states joined the settlement with five of the nation’s biggest lenders. The deal will reduce loans for a fraction of those Americans who owe more than their homes are worth. It will also send checks to others who were improperly foreclosed upon. […]

  • Michael

    What money? You call that money? After the banksters destroyed the economy with the most criminal behavior and walked away with trillions? You settle for that and you deserve what ever you get, which will be nothing. You better stand up and tell obama he better investigate and prosecute the elite offenders first!! instead of giving the real criminals immunity from prosecution. I puke in the face of this administration for the out and out collusion with the elite criminals who have literally bought him and the rest of our government. Welfare for Big Biz has to stop now! Send the criminal elite to real Jail where they can meet Bubba and set up house keeping.

  • CBS Detroit – Banks In $25B Deal To Settle Foreclosure Abuses | Financial Crisis Talk Center and Attorneys

    […] Banks In $25B Deal To Settle Foreclosure Abuses […]

  • melissa

    how is that a generous settlement? especially to those who have already lost their homes? it is so sickening what the banks get away with yet bank robbers go to prison.

  • Michigan Foreclosures Dropped In March, Unlike Most Of Nation « CBS Detroit

    […] A $25 billion settlement reached in February between the nation’s biggest mortgage lenders and state officials has paved the way for banks to take action on unpaid mortgages, many of which have been in a procedural limbo for months or years. And it’s those homes that could ultimately be foreclosed-upon and end up back on the market. […]

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