Michigan Expects To Get $790M In Foreclosure Deal

LANSING (WWJ/AP) – Michigan says it expects to get $790 million as part of a landmark $25 billion settlement with the nation’s top mortgage lenders.

The office of Michigan’s attorney general announced Thursday that the estimate is up from the about $500 million it said Tuesday was expected for joining the settlement. The deal was reached over foreclosure abuses that occurred after the housing bubble burst.

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.

“Everyone who has gone through and been victimized maybe by a loan that went bad or could be robo signing, and the fact is, what we are doing here in the state of Michigan is putting together a program with the legislature and the governor to help victims of the foreclosure crisis,” Attorney General Bill Schuette told WWJ.

Schuette said they will also set-up a “Homeowner Protection” fund to help struggling families, veterans and children left homeless because of foreclosure.

Read more about the settlement here.

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  • http://detroit.cbslocal.com/2013/05/04/mortgage-processor-gets-up-to-20-years-in-robo-signing-scheme/ Mortgage Processor Gets Up To 20 Years In Robo-Signing Scheme « CBS Detroit

    […] 2012, Schuette joined 48 other state attorneys general in entering into a settlement with the five leading bank mortgage servicers. The settlement addressed allegations of faulty foreclosure processes and poor servicing of […]

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