foreclosures 2Relief could be on the way for borrowers who were unfairly pushed out of their homes because lenders cut corners in the foreclosure process.
The banks are in talks with a group of state attorneys general about setting up a fund, paid for by lenders, to compensate homeowners, the Washington Post reports. The settlement would probably require that lenders do more to modify loans for struggling homeowners, rather than speeding into foreclosure, and would probably bar banks from initiating foreclosure proceedings while simultaneously negotiating a loan modification.
Earlier this fall, serious paperwork flaws came to light in numerous foreclosures by big lenders like JP Morgan Chase, Bank of America and Wells Fargo. That prompted calls for a nationwide foreclosure freeze, and triggered a high-profile probe by states' prosecutors.Read More »from Fund to help victims of foreclosure mess?