“World's Most Complete Neighborpedia”
Sponsor a Community — What is Localism? | Register or Sign In
Explore:   What's happening in your neck of the woods?
Home The "Settlement Terms" have a - "will move...

The "Settlement Terms" have a - "will move, but slowly" clause in there some place.

When I hear the word "Settlement" I think of the pieces of mail I get on a regular basis - telling me to join in on a class action suit in order to reap the rewards of the "settlement" for this or that. So I am hoping that homeowners do not view the recent announcement in the same manner - and not request to be considered in this "Settlement" that was recently announced.

WARNING: It will take time to put it all together and it is a basic "hurry up and wait" situation, but then remember Rome was not built in a day!

Just do your homework, find out how the "Settlement" works and then request your piece of the pie. This is government and they do not move at swift speed on any of these programs, but they are moving.

After many months of negotiation, 49 state attorneys general and the federal government have reached agreement on a historic joint state-federal settlement with the country’s five largest loan servicers:

  • Bank of America
  • Chase
  • Wells Fargo
  • Ally/GMAC
  • Citi

The settlement will provide as much as $25 billion in relief to distressed borrowers and direct payments to states and the federal government. It’s the largest multistate settlement since the Tobacco Settlement in 1998.

The Basics of THE SETTLEMENT:

The Basics

The $25 billion in funds will be dispersed as follows:

$17 Billion National Commitment to Foreclosure Relief Efforts
The servicers collectively agree to commit a minimum of $17 billion directly to borrowers through foreclosure relief effort options, including principal reduction for qualifying borrowers, short sales, anti-blight measures, and enhanced homeowner transition programs.

$3 Billion National Commitment to Underwater Mortgage Refinancing Program
The servicers collectively agree to commit $3 billion to refinance “underwater” homes (when a homeowner owes more on a mortgage than a home’s current market value). To qualify, borrowers must be current on their mortgage payments on a mortgage owned by one of the five banks.

$5 Billion Payment to States and Federal Government
The servicers’ $4.25 billion payment to the states includes $1.5 billion for payments to borrowers who lost their home to foreclosure by one of the five servicers…$750 million of the state-federal payment will go to the federal government to resolve federal claims.

Posted Thursday Feb 16