Foreclosure settlement a billion-dollar bust
The payouts, meant to close the books on an economic catastrophe that staggered millions of American households, have instead reignited feelings of anger and frustration.
USA TODAY-Steven and Joan Bailey say they're two-time victims of a broken foreclosure system.
In 2010, they lost their North Carolina home to a foreclosure they say shouldn't have happened because they were seeking a loan modification at the time. This year, they eagerly awaited their check from a big bank settlement engineered by the government to compensate millions of borrowers for past foreclosure abuses. They expected at least $6,000 or even the maximum — $125,000.
Their check arrived in April — for $800. Less than a month's rent on their apartment.
"Another disappointment," says Steven Bailey, a land surveyor who has become a foreclosure activist in Colorado.