Just when it seemed like all the news from the financial crisis of 2008 was finished, more news is released. The Department of Justice is currently negotiating with Bank of America over mortgage backed securities. These securities are thought to be directly linked to the nation’s financial collapse. Like other financial agencies before them, Bank of America seeks a settlement to end the current probe.
Up to this point, Bank of America has paid almost $60 billion in lawsuits and buy back mortgage securities. A reported $6 billion has been paid to the Federal Housing Finance Agency to settle its claims. Insiders are now reporting that at least $12 billion in payments is being negotiated to settle the civil investigation being conducted by the DOJ. According to CEO Brian Moynihan, the big stuff has already been worked out.
What can consumers expect from all this? About $5 billion of the settlement would be earmarked for struggling consumers. The money would go to consumers struggling to pay their mortgage and to remove blight in struggling neighborhoods. This $5 billion in consumer restitution is about $1 billion more than banking giant JP Morgan was required to pay with its settlement.
For Kansas homeowners struggling with mortgages not funded by Bank of America, there is still hope. A Chapter 13 bankruptcy may halt a pending home foreclosure. Bankruptcy can end creditor harassment and bring debt relief to struggling consumers. Getting the right information can help potential applicants determine which legal option best suits debt removal needs.
Source: www.abajournal.com, “At least $12 billion sought in DOJ talks with Bank of America to resolve mortgage probes,” Terry Carter, June 6, 2014