The five largest U.S. mortgage service providers were asked to consider paying delinquent borrowers as much as $21,000 each to get them to leave their homes, the Financial Times reported Friday, citing unnamed sources.
The settlement is part of a broader plans by the U.S. government to end the foreclosure crisis, the FT said on its website. The meeting was chaired by the FDIC, and the biggest service providers, led by Bank of America (BAC) were asked to consider a "cash-for-keys" program to encourage defaulters to leave their homes.
Banks would pay borrowers who are more than 90 days behind on mortgage payments up to $1,000 to seek financial advice and up to $20,000 as a "fresh start", the FT said.
Full story: http://www.ft.com/cms/s/0/9dd9a394-5672-11e0-84e9- 00144feab49a.html?
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