Mortgage Settlement Background Information
Recently, Joseph Smith Jr., the Monitor of the National Mortgage Settlement, released a report updating the status of the settlement. The National Mortgage Settlement is a historic, joint state-federal settlement with five of the largest mortgage servicers in the country: Ally/GMAC; Bank of America; Citi; JPMorgan Chase; and Wells Fargo.
According to the terms of the settlement, these mortgage servicers are required to give various forms of home relief to borrowers who were affected by the mortgage servicers’ violations of state and federal laws. These violations include signing foreclosure related documents outside the presence of a notary and without verifying the truthfulness of facts contained in those documents. These forms of home relief include:
- Immediate aid to homeowners needing loan modifications (including first and second lien principal reduction);
- Refinancing for borrowers who are current but their mortgages exceed their home’s value;
- Payments made to borrowers who lost their homes in foreclosure;
- Nationwide reforms to servicing standards.
Mortgage Settlement Report Update
According to the report, the five mortgage servicers have already given out more than $26.11 billion in mortgage settlement relief for more than 300,000 borrowers, which comes out to around $84,385 per homeowner. In California, just under $9 billion in mortgage settlement relief has been given to over 80,000 homeowners. Forms of relief include: complete 1st and 2nd loan forgiveness; short sale deficiency forgiveness; and refinancing. Additionally, almost 40,000 other homeowners are currently either in a loan modification trial phase or have successfully been approved for one. However, the deadline to make your claim is fast approaching on January 18, 2013. If you think you have a claim, contact your mortgage servicer or us to discuss your options.
What To Do Now If You Want To Pursue A Mortgage Settlement
You might have received a Notice Letter and Claim Form in the mail, if you lost your home due to foreclosure between January 1, 2008 and December 31, 2011, and your loan was serviced by one of the five mortgage servicers listed above. Take action to ensure that your rights are protected.Contact the expert bankruptcy and
foreclosure attorneys at Atlantis Law LLP to get immediate assistance.