BUFFALO, NY ( WKBW ) Nearly two million Americans affected by the foreclosure crisis are in for some relief when it comes to their mortgages, under a settlement announced Thursday by the U.S. government.
The $25 billion dollar settlement will be used to lower mortgage payments for borrowers who owe more than their homes are worth -by reducing their mortgage debt, or providing them the opportunity to refinance.
The banks will also pay up to $2,000 dollars in cash to those who have already lost their homes because of foreclosure abuses.
The deal was celebrated Thursday at the Justice Department and the White House.
President Obama stated, "We have reached a landmark settlement with the nation's largest banks that will speed relief to the hardest hit homeowners, and some of the most abusive practices of the mortgage industry, and begin to turn the page on an era of recklessness that has left so much damage in its wake."
The settlement excludes mortgages owned by Fannie Mae, and Freddie Mac - meaning almost half of the mortgage holders in the nation are ineligible.
A prominent Buffalo attorney who specializes in bankruptcy and mortgage business is Peter David Grubea. He joined Keith Radford LIVE for the "Newsmakers" segment of Eyewitness News at 5:30p.m. to explain this issue.
According Avvo.com, Grubea has been handling consumer and business bankruptcy cases for 18 years. He has handled more than 10,000 cases throughout Western and upstate New York.
Peter has had a practice in downtown Buffalo since 1997, and has a reputation as an aggressive advocate for debtor's rights.
Peter has been involved in may cases, and set local precedent on important issues, including the important mean testing.
Peter has been involved in bankruptcy cases for the Volunteer Lawyers Project, and has picked up awards from the Erie County Bar Association.