By now, we all know that federal and state officials have announced a $26 billion foreclosure settlement with five of the largest home lenders (Bank of America, Citigroup, Ally Financial/GMAC, JP Morgan Chase and Wells Fargo).
The deal is supposed to protect consumers from unsound practices in mortgage servicing and foreclosure processing, and requires banks to give money back to borrowers who have been foreclosed on, and principal reduction to homeowners who are currently underwater. It also sets aside funds to help borrowers refinance or modify their loans.
While this sounds like great news for homeowners, there are some caveats…
Bad news: But only by an average of $20,000.
Bad news: This only works if assiduously and tirelessly enforced.
Good news: Eligibility.
Bad news: Borrowers whose loans are held by Fannie Mae or Freddie Mac need not apply.
Already foreclosed on?
Good news: You are eligible for restitution if you lost your home in 2008—2011 due to “robo-signing”.
Bad news: $2,000 max—not much help for families who have lost their homes.
Conclusion? I am cautiously…(un)optimistic about this settlement!
For more information, check out the Legal Resources page at my website for a summary of the settlement, who is affected by it, and the projected timeline.
All of the details, including FAQs and further links can be found at www.nationalmortgagesettlement.com.
Contact my office today and set up an appointment to discuss your options and how this settlement could affect you.