Historic Robo-Signing Settlement is Not Without Controversy

On February 9thth, the United States Justice Department released the details of a $25 billion dollar settlement they reached with 5 major banks. The settlement occurred because the banks were accused of widespread use of “Robo-signing.”

Robo-signing is a practice employed by banks to automate the processing and approval of foreclosure proceedings against homeowners. In many cases the banks were discovered to have processed thousands of foreclosures in a single day, all signed by one person.

As a short sale specialist in Las Vegas with the CDPE designation, I believe this ettlement presents a unique opportunity for homeowners who are in danger of losing their home. The reality is, the banks would rather explore other options than foreclosure and this settlement gives them both the motivation as well as the funding to explore them.

Although the settlement is the largest government industry settlement since the $250 billion Big Tobacco settlement in 1998, there has been opposition on the grounds that the settlement does not go far enough to alleviate the $750 billion in negative equity in the country.

Are you a good candidate for a short sale in Las Vegas?

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