The Mortgage Settlement—How it Impacts Homeowners

The nation’s five largest banks and state/federal officials announced the largest joint state/federal settlement against the industry in history. $25-$26 billion is now directed at tackling the issues of mortgage abuses in our recent history that have caused so many Americans to lose their homes.

What does this mean to the everyday homeowner?

Underwater and struggling homeowners may be eligible for payments or principal write-downs on their mortgage. If you qualify, you will be notified via mail within the next nine months.

Here is a list to see if you may be eligible:

• Currently struggling to make payments and need a loan modification
• Borrowers who are current on payments but owe more on their home than it’s worth
• Borrowers who have already lost their home to foreclosure

Payments will be made over a three-year period by participating banks (Bank of America, JPMorgan Chase, Wells Fargo, Citi, and Ally/GMAC. You can learn more about the settlement at the just-launched “National Mortgage Settlement”Web site.

Source: “What the Mortgage Settlement Means to You,” MSNBC.com (Feb. 9, 2012)