Foreclosure lawsuit climbs higher

State and federal regulators have been negotiating a settlement with five of the largest banks in the United States, and the deal recently increased at least $5 billion in the past few weeks. The proposed settlement is now at $25 billion, which the banks would pay in exchange for release from other legal claims tied to mortgage originations.

The Wall Street Journal reported the settlement could go as high as $29 billion if more servicers are included in the investigation. Apart from the total cost of the settlement to the lenders, negotiations remain in flux over who will oversee the agreement and make sure both sides comply with the terms. The goal of the investigation and settlement is for lenders to provide ample support and compensation to homeowners who lost their homes due to shoddy foreclosure practices.

Wells Fargo Bank, one of the five major lenders in negotiations with regulators, recently announced it would host a two-day workshop to help homeowners refinance or modify their home loans. First Coast News reported Wells Fargo will hold the event in Northeast Florida and Southeast Georgia, where more than 5,000 of the bank's customers are struggling to remain current on their loan payments.

"Two-thirds of our customers who come to this event will have a positive solution outcome, either a modification or another solution for their mortgage payments," Michelle Braun, senior vice president with Wells Fargo Bank, told the news source.

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