The $25 billion settlement to resolve the abusive foreclosure acts of five major banks was officially filed in court in Washington today. Although the settlement had already been put into action (the announcement by President Obama was made a month ago), it had to be approved by a federal judge. The case is being called the “largest federal-state civil settlement in the nation’s history”. It’s been a year since attorney generals from all 50 different states first went after the big lenders in a major investigation into faulty foreclosure and lending practices. Oklahoma was the only state not included in the federal deal, but they have instead reached a separate settlement with the banks in the amount of $18.6 million.
The financial relief will go to benefit those who are currently distressed homeowners, those who were wrongly foreclosed on within the past three years, and those who would benefit from refinancing. If you’d like to know if the settlement will apply to you contact your lender (or the lender you were with when your home was foreclosed on) and visit http://www.nationalmortgagesettlement.com/ for more information.