In the past six months, this blog has reported rumors that a settlement was close in discussions between major mortgage banks and the attorneys general of all fifty states. The rumors have not proven true so far, but new ones are circulating, and they are getting reported here again. The settlement talks are over what measures should be taken to hold banks accountable for their past foreclosure process abuses, and how changes could be made that would provide actual help to homeowners in Fort Lauderdale and elsewhere across the country who need real help stopping foreclosures.

The reasons for the new rumors are the urgency of reaching a settlement before the parties begin to break off. Some state attorneys general are already saying that if the settlement lets the banks off the hook too easily, they will stay out of the settlement and pursue legal action against the banks in their states.

Fort Lauderdale foreclosure defense lawyers can see why many states would be wary of a deal that allowed the banks to have a say in their own punishment, since the banks would inevitably work toward minimizing or even eliminating liability for as many of their past misdeeds as possible.

There is some impatience with the process so far, with many observers beginning to sense that the banks may not have been negotiating in good faith, but simply hoping to delay the process and delay litigation that they would be likely to lose, and which would very likely have seriously expensive outcomes for them. The banks seem satisfied to let the process drag on indefinitely.

If real help is going to come to Florida homeowners anytime soon, then they should hope that this time the rumors of a settlement by Labor Day prove to be true.

Source: L.A. Times "Foreclosure reforms may be coming to a head" Aug. 14, 2011