California Attorney General Kamala Harris recently announced that California will be part of the $25 billion settlement with America’s 5 largest mortgage lenders. Under the settlement agreement, the five lenders agreed to pay more than $25 billion that will assist homeowners currently struggling with their mortgages to reduce their loan amounts, refinance, or complete a “short sale” for less than the homeowners owe. And during the 22-minute briefing on the settlement streamed online on February 9th, it was estimated that California currently has about 2 million underwater homes.
A small amount of the settlement will also be distributed to homeowners who found themselves the victims of “robo-signing” and other illegal foreclosure procedures. But it’s estimated that each victimized homeowner will only be receiving around $2,000.