States Negotiate $25 Billion Deal for Homeowners

Inquiring minds are reading the complete text of President Obama's State of the Union Address to see what distortions, lies, and hypocrisy it contains. I found a nice Orwellian set of paragraphs smack in the middle of his speech. And while Government can’t fix the problem on its own, responsible homeowners shouldn’t have to sit and wait for the housing market to hit bottom to get some relief.

By Abigail Field, an attorney and writer

First the checks bounced. 

Unsurprising to me, but still of note. From ProPublica, insight into Wisconsin (among other states): States have diverted $974 million from this year’s landmark mortgage settlement to pay down budget deficits or fund programs unrelated to the foreclosure crisis, according to a ProPublica analysis.

By Morris A. Davis Today, we're fortunate to have Morris A. Davis, Assistant Professor of Real Estate and Urban Land Economics at University of Wisconsin School of Business, as a guest contributor. Research by economists inside the Federal Reserve system have shown that two events typically lead homeowners to default on their mortgage (see here).

In the largest deal to date aimed at addressing the housing meltdown, federal and state officials on Thursday announced a $26 billion foreclosure settlement with five of the largest home lenders.

(Reuters) - A broad settlement with major banks over mortgage servicing abuses that would bring relief to distressed U.S.

Reuters - A broad settlement with major banks over mortgage servicing abuses that would bring relief to distressed U.S. homeowners could be announced as early Thursday, two people familiar with the matter said.