Well, the rumored deal between the Feds and the 5 largest mortgage servicers is nearly a done deal. A draft of the proposed settlement is, in fact, in the hands of the 50 attorneys general of all of the states for their review and approval or rejection. It had initially been rumored that it would be announced as a done deal in tonight's State of the Union address by Pres. Obama (wouldn't that have been a coup!), but delays in the state AG's review has made that not likely to happen. What does appear definite is that the lenders will give up about $25 Billion, distributed among 750,000 former homeowners who've lost their homes. That works out to about $1800 per individual. There is also the possibility that 1 million homeowners may receive principal reductions once the settlement is finalized and signed off on.
One thing that is agreed upon by moist everyone involved in the deal is that there definitely will not be a unanimous 100% approval by all 50 attys general. Many, California's included, have already rejected the proposed terms, in most cases because the settlement terms also would protect the lenders from future legal liability when and if any proof of improper activity by the lenders was found in cases of foreclosures. What everyone involved is hoping for is that at least 50-75% of the attys general sign on. Also notable is that these 5 lenders account for just 56% of all mortgages, so any deal will not cover private or securitized mortgages. Keep your eyes and ears open and contact your state attorney general for more info.
Good luck.
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