Last week, states were given a tight deadline to either accept or reject the terms of the outlined foreclosure deal settled as the result of a lengthy legal battle. Each of the 50 states participated in the investigation of mortgage fraud and unlawful foreclosure practices, and each were given the chance to accept the terms put forth in the restitution agreement. While there hasn’t been much news about who is in and who is out, California and New York are ready to join the agreement.
Who Is In?
California being one of several states hit hard by the foreclosure crisis is said to have been holding out for a better deal early on. However, California Attorney General Kamala Harris has since changed her tune and is accepting the terms of the resolution deal. In a statement Harris said, “For the past 13 months we have been working for a resolution that brings real relief to the hardest-hit homeowners, is transparent about who benefits, and will ensure accountability.”
It is not yet known whether other big players such as Nevada and Florida will join in, but there is much to lose if they opt for pursuing their own deal. As it stands, the current agreement includes a monetary payout to homeowners who were victim of the process, as well as increased regulations of lenders. The deal will require lenders to pursue mortgage relief options with homeowners and follow strict foreclosure procedures.