Now that the states have settled for $26 billion with five major lenders — Bank of America, Citigroup, JPMorgan Chase, Wells Fargo and Ally Financial – that together account for about 60% of the mortgage market, you can bet your sweet mortgage that banks will soon begin the process of foreclosing.
Many lenders held off reposing homes during the negotiation period with the claims of improper foreclosure process, faulty chains of title, and various lawsuits.
According to number supplied by RealtyTrac, 2011 saw a 34% drop in foreclosure filings with much of that drop likely due to the uncertainty involved in the negotiations. The people at RealtyTrac estimate that new filings will soar from 1.9 million in 2011 to between 2.2 million and 2.5 million this year.
Although the numbers may not be as dire here in the Bay Area, foreclosure threats continue to represent an ongoing problem for distressed homeowners.
We’re eagerly waiting to see how this mortgage settlement assists homeowners here in hard hit California and the Bay Area.