In foreclosure deal, California, Florida come out on top

[ProSense]

In foreclosure deal, California, Florida come out on top

By Lindsey White and Sam Carr

Soon after details of a multibillion-dollar foreclosure settlement became public, banks and state attorneys general outlined the expected financial impact of the deal. The states that saw their housing markets hardest hit during the financial crisis stand to benefit the most.

The accounting in the settlement is somewhat confusing. The much-quoted $25 billion figure includes $17 billion that banks must spend on a variety of programs to help beleaguered borrowers. Banks will receive credits for each dollar spent. "Sometimes they get a dollar for dollar credit, sometimes they get 45 cents on the dollar, sometimes they get 10 cents on the dollar," Iowa Attorney General Tom Miller explained during a press conference. "The benefit to homeowners on the full dollar amount is $32 billion." In addition, the deal includes $3 billion dedicated to refinancing loans and $5 billion to be paid to federal and state governments.

Using these figures, the settlement totals closer to $40 billion. California will receive up to $18 billion — a large proportion of the overall settlement and far more than the estimated $4 billion in relief that the state was set to receive when California Attorney General Kamala Harris walked away from negotiations in September 2011.

Harris insisted on "more relief for the most distressed homeowners, meaningful enforcement, and the ability of California and other states to pursue investigations into misconduct."

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http://www.snl.com/InteractiveX/Article.aspx?cdid=A-14188372-11823

http://www.calculatedriskblog.com/2012/02/mortgage-servicer-settlement-by-state.html

[ProSense]

1. Kick! n/t

[JDPriestly]

2. Kamala Harris did a good job for California.

Other state AGs could have joined in and supported her efforts more and maybe gotten better deals for their homeowners too.

Florida was really badly affected by the crisis. But Florida is a much smaller and more conservative state than California.

Yesterday I noticed many, many houses for sale not that far from my house in LA. It was startling to see in one place four houses and lots (one was an empty lot) for sale in a row -- a huge area for sale all at once. And there were more houses for sale on up the street. That so many houses are for sale in one area is something new here.

Looks like the foreclosure boom is continuing full force.

[jwirr]

3. Minnesota seems to be the only state that it is not available in - what is going on with that?