Foreclosure settlement helps more than 300,000 borrowers

Following the multibillion-dollar settlement between the nation's largest lenders and a number of state attorneys general.

Following the multibillion-dollar settlement between the nation's largest lenders and a number of state attorneys general, a considerable amount of the funds assisted borrowers impacted by the robo-signing scandal so far this year.

Between March and September, an estimated $26.1 billion has been allocated to help close to 300,000 households, according to a report from the Office of Mortgage Settlement Oversight

"The relief the banks have reported is encouraging," said office monitor Joseph Smith. "But it is important to remember that no obligations will be met until I have reviewed, confirmed and credited them."

Mortgage records shows the largest share of funds went toward short sale assistance. Because this options is less financial damaging to both borrowers and lenders, it has become the preferred way to deal with distressed borrowers on the verge of foreclosure.

Additionally, the settlement helped cover the legal fees of borrowers fighting to reclaim the properties and also helped completed second lien mortgage modifications. 

The settlement was a huge step in the right direction for the mortgage industry, and could help the national real estate recovery continues.



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