NEW YORK (PNN) - February 9, 2012 - The $25 billion settlement with banks over foreclosure abuses may result in a wave of home seizures, inflicting short-term pain on borrowers while making a long-term housing recovery more likely.

Lenders slowed the pace of foreclosures as they negotiated with attorneys general in all 50 states for more than a year over allegations of faulty and fraudulent paperwork used to repossess homes. With yesterday’s agreement, banks are likely to resume property seizures.

The backlog of foreclosures has trapped homeowners in properties they can no longer afford, depressed neighborhood prices by increasing the number of abandoned homes and led banks to tighten mortgage credit standards because of uncertainty about the cost of their potential obligations. Foreclosure starts fell 46% in December from October 2010, when the investigation into fraud perpetrated by banks by automatically signing foreclosure papers without first validating the legitimacy of the respective claims, according to Irvine, Kalifornia-based RealtyTrac Inc.

The agreement will direct $17 billion to writing down debt to buffer about 1 million homeowners from foreclosure through mortgage forgiveness, forbearance or loan modification programs, according to Housing and Urban Development Secretary Shaun Donovan. About 750,000 borrowers may get direct payments of as much as $2,000 to compensate them for servicing errors.

The losers in this agreement are the Amerikan people, of course. The banks are given immunity from prosecution for fraudulent acts that resulted in the stealing of trillions of dollars from the Amerikan people. The banks will never have to pay the price for their illegal acts

Ed. Note: When is enough, enough? It is time to overthrow the banksters.  Refuse to pay anything and refuse to leave your home! Shoot any intruders that try to take your home from you! This is what it means to assert your freedom! Revolution Now! Independence Forever!