Wisconsin homeowners could receive $140 million under new settlement
WAUSAU (WAOW)-- Economic experts say a new settlement could change the mortgage service industry for the better.
Wells Fargo is one of five banks involved in a landmark settlement that government officials say will provide an estimated $140 million dollars to people hurt by poor mortgage practices in Wisconsin.
"That's going to help remunerate some people who were foreclosed upon inappropriately and give us the opportunity I think to help many people in many aspects of life who were adversely affected by this foreclosure crisis," said Wisconsin Attorney General J.B. Van Hollen.
Wisconsin is one of 49 states set to receive money under the agreement, but critics say it will only help a fraction of the millions of homeowners who are drowning under their mortgages or facing foreclosure.
Christy Bruesewitz of Wausau is in that situation. "We got a letter saying they wouldn't accept our payments anymore because they started the foreclosure process."
But it's unclear whether she will qualify for assistance under the settlement. Wells Fargo did not comment on the situation directly, but did release a statement saying, "We're reviewing the Bruesewitz's loan and will reach out to them as is appropriate. Foreclosure remains an option of last resort, and we are committed to working with our customers to avoid it whenever possible."
A local economics expert says only time will tell if this settlement will make a difference. "By bringing more stability to the housing market that is bringing an end to the parade of foreclosures and that is keeping people in their homes," said Randy Cray, the director of the Economic Development Bureau at UW Stevens Point.
Staying in their home, is all the Bruesewitz's can hope for. "I feel like I can't trust anyone because it seems like everyone is against us," said Christy.
To learn more about the settlement and what it means for Wisconsin residents, check out the following links: