Foreclosure Lull May Be Ending
Last fall, the "robo-signing" scandal broke. Large banks were found to be foreclosing on homes with rushed or improper documents. As a result, banks re–examined their procedures, and foreclosures slowed around the country.
Now, one year later, foreclosures in Washington and around the country are picking up again. And lawyers with the Washington state Attorney General's Office say they are struggling to reach a legal settlement that would penalize the banks and help homeowners.
KUOW's Amy Radil reports.
It's been almost a year since the robo–signing scandal hit the news. That's when attorneys general around the country started negotiating a settlement with the major lenders. Dave Huey of the Washington state Attorney General's Office has been heavily involved in the settlement talks. He says the effort is unprecedented in size and in what it could cost the banks.
Huey: "There are many different interests involved, a lot of complex questions, and we're talking about a lot of money, both in terms of what they would pay and in terms of the cost of changing their conduct."
Huey says a settlement could include relief for borrowers if they're unemployed, even forgiveness of principal and reforms to the industry. And until recently, Huey says he was fairly confident that a deal would be reached.
Huey: "Lately, however, there's been a lot of misinformation and I would say outright lies circulated by people with
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