Foreclosure Deal to Spur New Wave of U.S. Home Seizures, Hel 
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Foreclosure Deal to Spur New Wave of U.S. Home Seizures, Help Heal Market

News Link  •  Housing

Foreclosure Deal to Spur New Wave of U.S. Home Seizures, Help Heal Market


02-11-2012  •  Bloomberg 

The $25 billion settlement with banks over foreclosure abuses may result in a wave of home seizures, inflicting short-term pain on delinquent U.S. borrowers while making a long-term housing recovery more likely.

Lenders slowed the pace of foreclosures as they negotiated with attorneys general in all 50 states for more than a year over allegations of faulty and fraudulent paperwork used to repossess homes. With yesterday’s agreement, banks are likely to resume property seizures.

“The best thing about the settlement, frankly, is that it will be done,” said Stan Humphries, chief economist for Seattle-based Zillow Inc. (Z), a provider of home-sales data. “The shadow of the settlement hung over the market for a year now.”

 
 
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Reported by Powell Gammill

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Tags: billion, settlement, foreclosure, abuses, result, seizures, inflicting, delinquent, borrowers, making
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