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FRIDAY, MARCH 04, 2011

Government, banks wrestle over settlements in botched foreclosures

WASHINGTON -- Federal and state officials are analyzing proposals that could help people who lost their homes or missed mortgage payments as a key part in resolving a multibillion-dollar case over botched foreclosure paperwork.

Government negotiators are wrestling with banks and their mortgaging servicing arms over the amount of the settlement - from $5 billion to $20 billion - and then must decide how best to use the money.

"We are getting close to a critical phase of negotiations," said Geoff Greenwood, spokesman for Iowa Attorney General Tom Miller, who is leading attorneys general from all 50 states in investigating mortgage foreclosure problems. "We've finalized nothing, and we're still working on some very complicated issues."

Read more: http://www.sacbee.com/2011/03/03/3447059/government-banks-wrestle-over.html#ixzz1FebpdcrA

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