Many people are asking what does it all mean for me.
On April 5, 2012, a federal judge approved the settlement agreements from attorneys general of forty nine states and five large mortgage lenders / servicers concerning lender / servicer misconduct in foreclosures and loan servicing, origination and modification. These settlement agreements are collectively referred to as the National Mortgage Settlement.
The five lenders / servicers include Ally/GMAC, Bank of America, Citi, JP Morgan Chase and Wells Fargo. As part of the agreement, these lenders / servicers will offers assistance to homeowners who meet certain eligibility requirements, or for previous homeowners who went through foreclosure between January 1, 2008 and December 31, 2011. To learn more www.nationalmortgagesettlement.com
Some of the general features of this settlement agreement include:
- Assistance to borrowers who may currently be in financial trouble have the intent and the ability to stay in their home.
- Refinance for homes where the balance of outstanding mortgage exceeds the current value of the home.
- Short sale assistance.
- New standards / rules lenders must follow.
- Payments to borrowers who were not offered loss mitigation or who were improperly foreclosed on.
As part of the overall settlement, California did obtain additional commitments from the five national lenders / servicers. California Attorney General, Kamala Harris, has stated that California obtained a special commitment that the lenders / services must allocate a minimum of $12 billion towards assisting California homeowners (including those in Almaden Valley) with principal reductions or short sales. If banks fail in this commitment, they will have to pay the state up to $800 million.
For homeowners wanting more information, they can contact their servicers directly at the following numbers:
Ally / GMAC 800-766-4622
Wells Fargo 800-288-3212
Bank of America 877-488-7814
JP Morgan / Chase 866-372-6901
Visit our websote for more information, www.almadenresidential.com