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WZZM 13 ONLINE
HOLLAND, Mich. (WZZM) -- The government announced a plan on Thursday where the nation's five largest banks will pay $26 billion as a settlement for foreclosure abuses.
Under the plan, one million homeowners who are "underwater" -- or owe more on their homes than they are worth -- will have their debt reduced by lenders or be able to refinance at lower rates.
Over the last several years, Michigan has been near the top of the foreclosure list. Thousands of people have lost their homes since the housing bubble burst.
A Holland family is facing foreclosure next month and they fear the new settlement won't help them.
If moving into a house makes it a home, the Rokus family is feeling the opposite effect.
"Its a very difficult time," says Karen Rokus.
They say their family has been torn apart.
"Arguments pop up over nothing. It shows a huge amount of stress," says Mark Rokus.
"All of our children are effected. Their grades are dropping," says Karen Rokus.
They sit helplessly in a house that in one month will no longer be theirs.
"I don't know if there's hope or help for us," says Karen.
Mark's job forced them to relocate into this home, but their last home never sold. They say Bank of America wouldn't budge on refinancing.
"They would never approve it. They would cancel it for frivolous reasons," says Mark.
In fact, they weren't even encouraged by $17 billion in mortgage relief.
"Its just smoke and mirrors. I'd be surprised if it goes to the people who need it," says Mark.
Real estate experts agree -- they say it's not clear who actually will benefit and how much.
"The proof is in the pudding, and that will be tested months down the road," says Dale Zahn with the West Michigan Lakeshore Association of Realtors.
The bank settlement also gives a portion of the money to homeowners who've already been foreclosed. But real estate experts say its nothing to celebrate.
"Is that enough to say we lost our house and we got $2,000?" says Zahn.
Experts say priority for loan help will likely go to the most responsible homeowners.
"We're in a golden position to have been refinanced with a long-term career, and if we can't get it I don't know who can," says Mark.
The Rokus family considered taking legal action but realized it would be too costly.