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Banks Slow to Act Under Mortgage Settlement

The five major banks have agreed to deliver $10 billion in debt relief for first mortgages.  So far, these banks have only written off about $750 million for just over 7,000 borrowers.  In fact, as the following article points out, Bank of America, which has the biggest obligation under the deal has yet to complete any modifications as of the end of June.

http://www.huffingtonpost.com/2012/08/29/debt-relief-mortgage-settlement_n_1839923.html

This settlement comes on the heels of the famous robo-signer scandal that uncovered wide-spread abuses is falsely-signed documentation in the foreclosure process.  The fear among some critics is that this settlement fails to address the housing crisis that has 11 million borrowers trapped underwater.  So what about those unfortunate folks?  If you are currently looking at an underwater mortgage, you should consult with an attorney focused on negotiating for reductions on underwater mortgages.  You could wind up paying much less than the banks are looking to collect from you.

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Kevin Fallon McCarthy is the McCarthy Law PLC’s managing attorney and an experienced Phoenix debt attorney. Mr. McCarthy has also worked as general counsel for a large corporation. He has corporate counsel experience in human resource matters, general corporate governance, and union class action litigation.