You might be wondering what the $25 billion foreclosure settlement with the big banks and states means for you, your home and your local housing market.
The answer is, it depends.
For homeowners and those whose homes were recently foreclosed upon, the deal means that you could receive a cash payment, a principal reduction or refinancing with the money from the settlement.
Only those borrowers who used the five banks involved in the settlement are eligible. If that means you, you can visit a new government website — nationalmortgagesettlement.com — to find out how you can benefit from the deal.
If you have had a mortgage or currently have your mortgage through the five banks, each bank has set up a toll-free number to get the process started.
- Ally/GMAC: 800-766-4622
- Bank of America: 877-488-7814
- Citi: 866-272-4749
- J.P. Morgan Chase: 866-372-6901
- Wells Fargo: 800-288-3212
Here are three categories of consumers who could benefit from the settlement, from the government’s website:
- Homeowners needing loan modifications now, including first and second lien principal reduction. The servicers are required to work off up to $17 billion in principal reduction and other forms of loan modification relief nationwide. State attorneys general anticipate the settlement’s requirement for principal reduction will show other lenders that principal reduction is one effective tool in combating foreclosure and that it will not lead to widespread defaults by borrowers who really can afford to pay.
- Borrowers who are current, but under water. Borrowers will be able to refinance at today’s historically low interest rates. Servicers will have to provide up to $3 billion in refinancing relief nationwide.
- Borrowers who lost their homes to foreclosure with no requirement to prove financial harm and without having to release private claims against the servicers or the right to participate in the review process. $1.5 billion will be distributed nationwide to some 750,000 borrowers.
But don’t wait for your check in the mail or your payment to change quickly. It will take some time for each state to set up the structure to take in the applications, evaluate them and decide who is eligible.
And what happens to those individuals who played by the rules? We purchased homes we could afford and we continue to make our payments however; some are now underwater as a result of individuals buying homes they could never afford therefore bringing the market crashing down on everyone. Time and time again, the good guy finishes last. Why should we continue to play by the rules?
The people who play by the rules are the “sheep” that they depend on to make these National Robberies work. The Gov’t doesn’t play by the rules…nor does the BANK…but just YOU try breaking them yourself ! If people were not so “dumbed down” they would see what is being done to them and plain refuse to pay the mortgage. Is the Bank gonna come by and take your property ? Ever hear the saying about “cold dead hands?” As long as they keep the people divided they can count on suckering us every time…. ! Only unity can stop them and they have everyone fighting amongst each other. Nowhere is this more evident than Maine. Our new Governor has opened a chasm between classes in Maine and it is escalating at an alarming pace. My neighbor lost her husband and has 3 kids and she is terrified to use an EBT card at the supermarket because of the crap she will take from so-called “working people” that have been fired up by politicians like LePage who blame the poor for all the missing money that has been “skimmed” by politicians and their families. It’s called larceny if we do it.
Why should ANY American homeowner have to pay their mortgage ? Seems to me just 3 years ago, as the Banks were stealing $700 BILLION from the taxpayer, our homes were labeled “toxic assets”. The Banks don’t seem to be hurting anywhere near the magnitude of the taxpayer…so where’s the money ? And for all you “Partisan Warriors” here’s something to keep in mind…..GWB initiated the TARP free taxpayer cash give-away, like any greedy Republican would…..but Obama actually signed it. Is it possible that while we were all fighting over “parties” they pulled the wool right down over our eyes ? Naw….course not….I’m just being “crazy”…..