$25 Billion Deal for Homeowners

 A broad government settlement with the nation's largest banks could benefit more than two million Americans. This latest effort could have real impact on homeowners who own more than their houses are worth -- but this largely depend on how effiectively the program is put into place.

It is expected that nearly one million homeowners will have their mortgage debt reduced by banks and lenders. 300,000 homeowners may be elgible to refinance their homes at lower interest rates, and another 750,000 homeowners who have already lost their homes to foreclosure from September 2088 to the end of 2011 will receive checks for nearly $2,000.

The details of the plan are pending. What is not clear is how many state will participate. California and New York have signed onto the plan. 

The plan most definitely will not help everyone hurt by the bank and lender abuses, like robo-signing and other foreclosure fraud.

The hope is that the plan will help provide a catalyst for turning the market around by flushing a chunk of negative equity out of the system. This may provide the floor the market has been searching for and with the spark it needs to ignite a more normal market -- where the flow of houses entering the market is more consistent and measured.

This good news for troubled homeowner but far from a silver bullet.

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