In 2010 the Hardest Hit Fund was initiated by the federal government to help nineteen states worst hit by foreclosures. Florida was one of the first recipients. Each of the states develops their own rules. Religious groups organized a meeting stressing that the disbursement was not fair as the rules were stricter in Florida than elsewhere.

With foreclosures persisting, the settlement talks getting bogged down with differences, many of the attorneys general are opting out of the investigating teams contending that not enough is being done to help the troubled house owners. The liberals do not want to give the banks release from bigger liabilities.

When the Bush administration came out with the $700 billion package after the failure of AIG, he received support for both Obama and McCain, who were both campaigning at the time. The situation was too grave to not have support. But in the House, Republicans voiced their strong opposition. A theatrical drama played out in [...]

Nine mortgage servicers refused to release of audit report. ProPublica had contacted them all. They either openly refused to give any excuse for their action or argued by saying that the contents were of a confidential nature. Collectively these firms have till now been given $471 million through HAMP. They are due to be paid millions more.

The Attorney General of Massachusetts, Coakley has withdrawn from the investigating team probing the lapses of the banks in foreclosure operations. She said she did not have confidence in the banks anymore. She will be conducting her own investigations and is planning to file lawsuits against some banks. She is also investigating MERS issue.

The legal firms engaged by Fannie Mae for handling defaults and mortgages have come under criticism for quite some time for resorting to illegal means to expedite the process. But Fannie Mae and its regulator ignored the issue. The firms complain that they had to cut corners to deal with the volume of work.

Recent surveys conducted have shown the close link between foreclosures and ill health arising from anxiety and tension. Suicidal tendencies have also increased. Any settlement talk should include funds for health care. Loss of jobs leads to frequent hospital visits and default in mortgage payments.

The new leader of the Democrat in the House in Oregon, Tina Kotek will give priority to foreclosures and financing for small business enterprises. Till next February no new bills will be taken up but there will discussions on revamping the laws of the state so as to compel banks to maintain their foreclosed units.