Banks Wrongfully Foreclose: Get a Slap on the Wrist

Those illegally foreclosed on get a pittance in return.

By John Lawrence Banks foreclosed on military service members, homeowners who had been approved for a loan modification and even homeowners who were current on their payments. At least 53 homeowners who weren't behind on their payments were successfully foreclosed on and lost their homes for no reason. There was widespread criminal behavior on the part of the banks, but in a recent settlement they got off relatively cheap. A foreclosure settlement between the government and 13 banks on April 9 spread $3.6 billion in cash among millions of borrowers. The consultants who determined how much each homeowner would get happened to be bank employees and will get $2 billion for their efforts.