Big Banks Settle Foreclosure Fraud For $25 Billion: Does This Mean No More Exotic Mortgage Products?

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The mortgage fiasco, mortgage fraud and robo-signing issues have been put to rest. the big banks agreed to pay out $25 billion to those homeowners who were harmed financially. They also promised not to do it again. Well, is this enough? And can we trust the banks?

Homeowners in Miami are suspicious. They took the full force of the housing bubble when it exploded. Even now half of Miami's houses are still underwater with their mortgages. So when the news of the settlement reached Miami residents there was no dancing in the streets.

About $2,000 is all a homeowner in Miami can expect to receive. These homeowners were the victims of fraudulent foreclosures brought about by robo-signing. Moving costs are more than $2,000 for most of these homeowners. It doesn't even cover the security deposit, plus first and last month's rent on rental property.

The big issue now is the amount of foreclosure properties that will be flooding the market. The banks were sitting on the bulk of foreclosure notices. Now that a settlement is reached and they are sure that future litigation is minimized, they can go ahead, full speed, and start foreclosures by the thousands.

For more information on foreclosures and mortgages please visit: House Refinance Center.