It appears that the lawsuit against the five major lenders’ foreclosure practices may have a settlement before Christmas. The settlement is expected to be in the range of $25 billion. Also of not is that it will require principal reductions for underwater homeowners.

This could be great news for homeowners looking for principal reductions. That being said, I will believe it when I see it and how the lenders will be monitored to ensure that this actually happens remains to be seen. At the very least, settling this lawsuit may be a signal that the major lenders will not be “running scared” anymore and could finally start a more agressive release of the pent up inventory of foreclosed homes which would be good news for Maricopa Arizona home buyers as inventory is at all time low levels.

Only time will tell.

http://www.dsnews.com/articles/attorneys-general-expect-to-reach-settlement-before-christmas-2011-12-13