What the Mortgage Settlement Means for the Housing Market

The Takeaway

On Thursday the government approved a $26 billion settlement for homeowners who’ve been foreclosed upon or are currently at risk. Approximately two million Americans will get a $1,800 settlement check, which is a lot of people but not a whole lot of money: the Joint Economic Committee of Congress found that the average foreclosure in 2008 cost $7,200. This money also won’t cover losses accrued by local governments who lost tax revenue, or neighbors whose own property values fell. Paul Kiel is reporter at ProPublica. Gordon is a resident of Davie, Florida who lost his home in December of 2008. He currently lives in a mobile home.

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