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Underwater Homeowners Doubt Mortgage Deal |

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Underwater Homeowners Doubt Mortgage Deal
Underwater Homeowners Doubt Mortgage Deal

A settlement with 49 states and five of the nation’s biggest mortgage lenders could bring around $1.5 billion to Nevada to help struggling homeowners. The final deal was announced Thursday.

The settlement is designed to help homeowners who are underwater in their homes and help those who illegally lost their homes to foreclosure in the robo-signing scandal. The deal will also protect the banks from some lawsuits from homeowners.

Not everyone is happy with the settlement. Danny and Nancy Boyd moved to their northwest Las Vegas home from the Midwest. It was supposed to be the perfect place to retire. Like most homeowners in southern Nevada their single-story home has lost value.

"I do not think in my lifetime I would see any equity in this house," Boyd said.

Their home is close to $400,000 underwater. The federal mortgage settlement would give them between $17,000 and $34,000 in principal reduction. Boyd says that cut will not make much of a difference.

"That would be dumping a bucket of water into Lake Mead and expect some kind of results. It is not going to affect us at all," Boyd said.

Lawyers are also opposed to the deal. Litigation attorney Matt Callister has been fighting banks and mortgage lenders for several years. He called the settlement woefully inadequate to address the mortgage crisis that has engulfed southern Nevada.

"Now to simply let them off the hook, criminally, administratively and civilly is absurd," Callister said.

Nationwide the banks agreed to payout $25 billion. The agreement gives Bank of America, JP Morgan Chase, Wells Fargo, Citigroup and Ally Financial three years to reduce loans for nearly 1 million households. About 750,000 homeowners who were improperly foreclosed upon will get a $2,000 check.

(The Associated Press contributed to this report)