GOLDEN VALLEY, Minn. -- Homeowners who went through wrongful foreclosure will soon see some compensation from banks. That's thanks to asettlement made between ten major U.S. banks and federal regulators Monday.
The agreement means 3.3 billion dollars in direct payments to owners who went through the foreclosure process in 2009 and 2010. 5.2 billion more will be in loan modifications, forgiveness of deficiency judgments and other assistance.
"It's just bringing closure to the process instead of having this drag on for years and years and people don't get any money. It will be over and done with and everybody can move on from this point," says Herb Tousley, Dir. of Real Estate at St. Thomas' Opus School of Business.
Closure because banks now know what exactly they have to pay and consumers will get their money faster, but some argue, this deal means those consumers will get far less than they deserve.
"It's pretty insulting that these banks can commit the crimes that they are committing and pay a pittance of the damage that they've caused and then be absolved of their crimes," says Caylin Crawford with Occupy Homes MN.
Crawford says there are still people going through the process that will never see a dime of this money.
When all is said and done, those affected will receive anywhere from a couple hundred dollars to $125,000, depending on the severity of harm done during the process.
How do you get your money? Sit and wait. A payment agent will contact those who are eligible before the end of March.