According to recent news articles, the US Government is close to settling with the top five mortgage companies who have been accused of various illegal loan abuses in their foreclosure process. The government is close to settling despite not fully investigating the full scope of the violations and the ramifications of what it all means to the taxpayer. So, the banks may get off easy.
Various groups who want to prosecute the banks for all the violations have different opinions on how far they think the government should take the violations of law. The lack of a strict investigation since has inflamed members of the Senate Banking Committee. Senator Sherrod Brown, a committee member, said, “I want them to be aggressive. Whatever it takes to send a message that robo-signing and that kind of behavior wont be tolerated. Senator Jeff Merkley, another banking committee member, said of the state attorney generals that in terms of doing right by homeowners in this country, they need to have all the data and all the figures so they can pursue what is a fair deal.
On the other hand, the Justice Department is pressing states attorney generals to release the banks from liability in exchange for a quick settlement. The Obama administration wants a quick settlement to ensure the stabilizing of home prices and a quicker recovery for the economy. Many tie the housing crisis directly into the cause of the continuing sluggishness of the economy, and the Obama administration fears a delay in settlement could jeopardize a full financial recovery or even send us back into another recession.
Whether or not our President is right about his fears, there is much more to the sluggishness of our economy than the housing crisis. What may be more important to us than a quick settlement is to ensure the problem will never return again under similar circumstances. Most likely, the only way that can happen is if there is a thorough investigation and prosecution of wrong doings.
Regardless of what side you take on the issue, I think we can all agree the housing crisis must come to some kind amiable solution within a reasonable amount of time. There are still over 2.9 million homes waiting to go through the foreclosure process that need to be placed back into the market to help stabilize the market values. Foreclosures are one of the leading indicators for bankruptcy, and bankruptcy is one of the leading indicators for a sick economy.
Maybe you are one of the ones who have been caught up in the foreclosure scandals, and your bank is currently not wanting to modify your loan. Your only options may be to take the bank to court or file for bankruptcy protection. If you chose the latter option, you might consider consulting with a bankruptcy lawyer in order to help you understand how complex bankruptcy laws may apply in your particular situation.
If you determine you are in need of relief from the stress associated with debt and you live in or around the metropolitan counties of Bergen or Passaic, New Jersey, contact us here today at . We will help you find a bankruptcy attorney in your area that will help you with any questions you may have on bankruptcy law.
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