JACKSONVILLE, Fla. -- Susann Keifer knows something about trying to get a loan modification. The Middleburg woman has been trying to get one to save her home going on four years.
A settlement to resolve foreclosure-abuse involving banks and mortgage companies is being touted as a landmark agreement to help homeowners facing foreclosure.
The $25 billion settlement requires five of the largest banks to reduce loans for for one million households considered at risk. The deal also includes paying $2,000 to about 750,000 Americans who were improperly foreclosed on.
"The bank keeps putting us off and telling us once again we don't have this paperwork, we don't have that paperwork," said Keifer who has been trying to get more favorable terms on a $183,000 mortgage.
Keifer says it's beyond frustrating trying to get the ball moving. She hopes the settlement reached with banks will help, but she is just waiting.
Jacksonville foreclosure attorney Chip Parker who represents homeowners fighting to keep their homes is not impressed with the deal.
"I think it is hear breaking for the middle class," said Parker who added what does $2,000 do for a family that lost their homes because they were improperly foreclosed on.
"At the end of the day the banks are going to pay about $5 billion, by the way that's what they have earmarked and set aside for years knowing their criminal conduct would come home to roost one day," said Parker.
JPMorgan Chase said in a statement,"The settlement includes far reaching relief that will help many of our customers and complement our already extensive efforts to improve our borrower assistance efforts and servicing processes."
The settlement also ends a separate investigation into Bank of America and Countrywide for inflating appraisals during a six year span. Bank of America acquired Countrywide in 2008.
About $10 billion dollars from the settlement will be used to reduce mortgage payments for underwater homeowners. An economist for Capital Economics, Paul Diggle, says that's a "drop in the ocean" considering 11 million borrowers are underwater by $700 billion.
First Coast News