Tuesday, February 21, 2012

South Carolina homeowners to receive $190 million in settlement

More than 15,000 South Carolina homeowners will receive about $190 million in foreclosure relief and other compensation from the blockbuster settlement between state attorneys general and the country's largest mortgage servicers.

  • $137.3 million will go toward principal reduction, short sale assistance and other foreclosure relief for underwater borrowers in default or at risk of default.
  • $36.5 million will help underwater borrowers current on their payments refinance at lower interest rates.
  • $16 million will go to homeowners who already lost their homes to foreclosure, in $2,000 chunks.
The figures come from the consortium of state attorneys general who negotiated the deal, posted on their website, NationalMortgageSettlement.com.

All told, the mortgage servicers -- including Bank of America and Wells Fargo -- will pay about $25 billion to absolve claims that they used incorrect and improper foreclosure and mortgage servicing practices.

About 28,000 North Carolinians will receive about $275 million from the settlement. The state will receive about $64 million, most of which will be used to provide housing counselors, legal assistance and expanded prosecution of financial crimes.

South Carolina had previously announced that the state's share would be about $33 million. The state has not yet broken down how it will use that money, as North Carolina has done.


Anonymous said...

South Carolina becareful of how your governor uses that money. She very well may attempt to balance her budget with it instead of giving it the people it rightly belongs to. Watch Governor Haley and her administration, they cannot be trusted. The evidence is there and she dodged questions from reporters about it. Demand to know how the money is going to be used and stay on top of it until she provides the information and if she pulls another fast one, call her out!

Anonymous said...

I've stayed out of this. I don't borrow money, I don't live in a deficit. I don't require a bailout. I did everything right.

So why am I the only one NOT getting subsidized? Why am I paying for everyone else's mistakes? Should I start doing unethical and immoral things so I can get free money too?

Now that I said this, I don't necessarily blame the people who were lied and snookered into buying these homes. Just wondering why I have to pay for it.

Anonymous said...

Okay. I know how to read a contract. I didn't buy a McMansion. Started with a very modest home, fixer upper, worked to have good credit and qualified for a low interest rate. Worked two jobs so that it is paid. Sacrificed and did without. AND NO ONE IS HELPING ME! I'M HELPING MANY WHO WERE TOO LAZY TO MAKE THEIR PAYMENTS OR OVER BOUGHT WHAT THEY COULDN'T AFFORD. This is wrong.

Anonymous said...

That's okay, just wait til they find out they have to pay taxes on the $2,000 :) And yes, most of the defaulting was due to poor planning or people who can't afford an apartment much less a home. Owning a home is not an entitlement. Let's hope Freddie and Fannie are shut down. Now wait to see the debaucle on student loans.