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13K Indiana foreclosure victims to get $2K checks

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Underwater Indiana homeowners will receive about $43 million in refinanced loans while other borrowers will get $30 million worth of loan-term modifications and other relief as part of a $25 billion nationwide settlement with the country's biggest mortgage lenders, Indiana Attorney General Greg Zoeller said Thursday.

The deal mends foreclosure abuses that occurred after the housing bubble burst, and requires five of the largest banks — Bank of America, Wells Fargo, JPMorgan Chase, Citigroup and Ally Financial — to reduce loans for about 1 million households at risk of foreclosure and send checks to about 750,000 Americans who were improperly foreclosed upon.

As many as 13,000 Indiana borrowers whose homes were improperly foreclosed upon from 2008 through the end of last year will receive checks of $2,000 under the settlement with the federal government and 49 states, Zoeller said.

Overall, $97 million of Indiana's $145 million share of the deal goes directly to Indiana borrowers. The attorney general's office will receive a direct payment of about $45 million to fund consumer protection, state foreclosure prevention efforts and related programs, Zoeller said. Indiana's Department of Financial Institutions will receive an estimated $1 million.

The banks will have three years to fulfill the terms of the deal, which is subject to final approval by a federal judge.

"This resolution, while not everything we had wanted, speeds help to Hoosiers and for the economy as a whole," Zoeller said.

Loans owned by Fannie Mae or Freddie Mac are not affected by the settlement, which is the biggest involving a single industry since a 1998 multistate tobacco deal.

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  • Money to AG's office a waste
    I totally disagree with $45mil being given to the state Attorney General's office. That money is a waste. All of the money should go to help the homeowners & the people who were foreclosed on. Why such a big percentage to state govt? They'll get to start another agency staffed with people who have new-found power & don't care about the people they serve. As soon as the program was announced, I knew the states would end up with a huge chunk of the money for themselves that would just be squandered. Or maybe Mitch Daniels will just happen to "find" another big chunk of money that was "posted in the wrong section of the state's books."
  • Note to RG
    Actually, it was Greenspan who encouraged the elderly to refinance their homes, using their equity to boost the economy after 9/11. In addition, it was George Bush and Barney Frank who jointly suggested that everyone should hold a piece of the rock. It was the Bush Administration, namely Treasury Secretary Paulson who deregulated Wall Street and Lenders such as Countrywide, Washington Mutual, Wachovia, Bank of America, and Wells Fargo. When the TARP Bailout Proposal went to Capitol Hill in October 2008, Treasury Secretary Paulson asked for, and received, full immunity from future prosecution, dating back to his time as CEO of Goldman Sachs, the co-recipient of the initial $350 Billion Dollar Tarp Bailout Payment for Wall Street, back in October 2008. It was the US Treasury and the Federal Reserve, both controlled by the Bush Administration, that created sub-prime mortgages, starting in 2004. Many members of the House and Senate, on both sides of the aisle, benefited from home mortgage refinancing. Banks, appraisers, and realtors pushed people into home mortgages they had no business accepting, based on claims that the housing market would only get better. Average Americans did not create Credit Default Swaps, I think those creations happened on Wall Street. Spend some time at the library, you will be shocked by what your research brings forth.
  • what about Barney?
    While it is right and fair to punish the banks' for their wrongdoings, how is it fair NOT to punish those that got us into this mess to begin with (Barney Frank and his astute congressional colleagues - who are employed by us!) who FORCED THE BANKS to make (subprime) mortgage loans to people who they knew would never be able to pay them back?!!! And here again, our wonderful "Redistribution Administration" gives handouts to those who default on their financial commitments and gives nothing (except the promise of higher taxes and less personal freedom) to those who manage their obligations responsibly and ethically. November 2012 cannot come soon enough!!!!!!!

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  1. If what you stated is true, then this article is entirely inaccurate. "State sells bonds" is same as "State borrows money". Supposedly the company will "pay for them". But since we are paying the company, we are still paying for this road with borrowed money, even though the state has $2 billion in the bank.

  2. Andrew hit the nail on the head. AMTRAK provides terrible service and that is why the state has found a contractor to improve the service. More trips, on-time performance, better times, cleanliness and adequate or better restrooms. WI-FI and food service will also be provided. Transit from outlying areas will also be provided. I wouldn't take it the way it is but with the above services and marketing of the service,ridership will improve and more folks will explore Indy and may even want to move here.

  3. They could take the property using eminent domain and save money by not paying the church or building a soccer field and a new driveway. Ctrwd has monthly meetings open to all customers of the district. The meetings are listed and if the customers really cared that much they would show. Ctrwd works hard in every way they can to make sure the customer is put first. Overflows damage the surrounding environment and cost a lot of money every year. There have been many upgrades done through the years to help not send flow to Carmel. Even with the upgrades ctrwd cannot always keep up. I understand how a storage tank could be an eye sore, but has anyone thought to look at other lift stations or storage tanks. Most lift stations are right in the middle of neighborhoods. Some close to schools and soccer fields, and some right in back yards, or at least next to a back yard. We all have to work together to come up with a proper solution. The proposed solution by ctrwd is the best one offered so far.

  4. Fox has comments from several people that seem to have some inside information. I would refer to their website. Changed my whole opionion of this story.

  5. This place is great! I'm piggy backing and saying the Cobb salad is great. But the ribs are awesome. $6.49 for ribs and 2 sides?! They're delicious. If you work downtown, head over there.

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