Sunday, February 26, 2012

Arizona gets $1.6 billion in mortgage settlement case

Arizonans will divide up about $1.6 billion from a nationwide settlement announced Thursday with five major mortgage lenders.

The cash is part of a $26 billion pact to settle claims that the lenders acted improperly and illegally in dealing with homeowners who sought mortgage relief. The allegations range from refusing to work in good faith with borrowers to outright fraud in offering up documents to courts to foreclose on homes.

Thursday's settlement came after California and New York finally agreed to become part of the settlement. That left only Oklahoma to deal on its own with the lenders.

But it also was waiting on Arizona Attorney General Tom Horne finally settling a separate lawsuit the state had filed in 2010 against Bank of America alleging various types of fraud.

Bank of America has agreed to pay the state another $10 million. Some of that will go to individuals who were harmed by the bank's foreclosure activities.

The biggest chunk of Arizona's share of the settlement -- $1.3 billion -- is earmarked to directly help those who are "underwater' with their mortgages, owing more than the property is worth.

Read the rest of the article at Verde News

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