U.S. Foreclosure Settlement May Include Writedowns

Existing Home Sales Drop 3.8 Percent in May
June 21, 2011, CNNMoney.com

Sales of existing homes fell in May, as severe weather and high gas prices weighed on the shaky housing market. Home sales fell 3.8% to a seasonally adjusted annual rate of 4.81 million, down from a revised rate of 5 million in April, the National Association of Realtors said Tuesday.

Politically Tied Lawyers Win Jobs Handling Foreclosures in the City
June 20, 2011, New York Times

The foreclosure crisis has caused a surge in the number of court-appointed receivers for distressed properties in New York, and politically connected lawyers are benefiting. The court system in New York State has long been criticized for fostering a system of patronage appointments that enriches lawyers and others with ties to influential politicians.

HUD Program to Aid Distressed Borrowers
June 21, 2011, Washington Post

The Department of Housing and Urban Development announced the launch Monday of a $1 billion program to save delinquent homeowners in more than two dozen states from foreclosure.

Government Stays Glued to Mortgage Market
June 20, 2011, Wall Street Journal

The nation's weak housing market will likely keep the government in the mortgage business for a long time to come. U.S. taxpayers are currently on the hook for $138 billion. The fragile housing market is complicating Washington's stated goal of dialing back its support after it has reduced stakes in the financial-services and auto industries. The slide in home prices in turn is weighing on the economic recovery, and it threatens to hamper a bipartisan push to unwind the emergency support policymakers enacted three years ago.

U.S. Foreclosure Settlement May Include Writedowns
June 21, 2011, Bloomberg

States may get to choose individually in a possible nationwide foreclosure settlement with U.S. banks how to use any money, including whether apply funds toward principal reductions for borrowers, Georgia Attorney General Sam Olens said.