Banks Agree to $26 Billion Deal for Homeowners in the U.S.

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The major banks in the United States will finally provide assistance to more than two million current and former homeowners in need after finally agreeing to a twenty-six billion dollar settlement. The United States government and the big banks spent many months going back and forth trying to work out a settlement that was intended to hold the banks accountable for foreclosure abuses.

While many homeowners, the government, and the big banks are happy that this lawsuit has finally been settled, there is a vocal minority that is not entirely pleased with the end result. The settlement will only help out a fraction of those that are facing foreclosure. Roughly one million current homeowners will have their mortgages reduced. The seven hundred and fifty thousand former homeowners who lost their home as a result of the foreclosure abuses will receive a check for two thousand dollars at some point in the next three years.

The majority of the states have signed the agreement, ensuring that their residents will receive some of the aid. The two most recent states to join in on the lawsuit are New York and California. In New York, roughly forty-six thousand homeowners will benefit from the lawsuit. Half of those forty-six thousand will receive a reduction in their mortgage principle. The other half will receive the two thousand dollar check.

The federal government had hoped to increase the settlement to thirty-nine billion dollars, though the increase is highly unlikely now that the deal has gone public.

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About Ella Jourgeson

Ella was recently an intern who checked all the articles for grammatical and spelling errors. She is now an all purpose writer filling in wherever we need help.

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