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State Attorneys General Deal on Mortgages Likely

A state attorneys general’s deal on mortgages is likely and it could cut one million homeowners’ mortgage burden by about $20,000 each, reports the New York Times.

The deal, between the attorneys general, federal officials, and the nation’s biggest mortgage servicers has been on the table for a while, and just needs a little more of a push.

Even as housing secretary, Shaun Donovan, is going forward with crafting a deal, some critics think it might be too lenient.

The nation's five largest mortgage servicers are: Bank of America, JP Morgan Chase, Citigroup, Wells Fargo, and Ally Financial.

In total the agreement might come out to $25 billion, with nearly $17 billion of that used to reduce mortgages. As for those 750,000 families who had been affected by improper foreclosure activity, they would get about $1,800 each, reports the Times.

Improper foreclosure activity has, perhaps, not gotten enough attention (and therefore not enough money is being directed at it).

Some of the foreclosure crisis revolves around the way that the foreclosure process is being handled, from banks not being able to provide proper documentation of ownership, to claims that documents have been "notarized" but not actually signed in the presence of notaries, to the act of robo-signing.

In essence, many documents were signed by banks without the banks first confirming that they were accurate.

If you are involved in or face a foreclosure crisis of your own and have questions about the process or the bank's right to proceed, contact an experienced lawyer in your area.

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