In late November 2013, it was announced that Wall Street bank JPMorgan Chase agreed to a massive $13-billion settlement with the US government, the largest settlement by any American company ever. JPMorgan admitted to knowingly selling toxic loans to investors and homeowners, which significantly contributed to the housing bubble and the economic downturn.
What does the mortgage settlement mean for California homeowners?
California was and is still one of the hardest-hit states from the housing collapse. During the collapse, over 1 million foreclosures occurred in California. California will receive the most help resulting from this settlement. Included in the agreement is $4 billion to directly help California homeowners whose homes were foreclosed or who are currently struggling with their loan. Most of this money will go towards principal forgiveness and other programs, such as loan modifications, to assist homeowners with underwater loans. Some homeowners will even have their first-mortgage completely forgiven.
If your interest rate is currently higher than the current fair market rate (roughly 4.5 - 5%) you may be eligible to have your interest rate reduced. This can result in drastic savings on your monthly mortgage payment. An independent monitor will be appointed to oversee this process and ensure that JPMorgan complies with the settlement terms.
Now is a great time to seek financial assistance if you are struggling with your mortgage payments or if your home is upside-down. This settlement, coupled with the National Mortgage Settlement, has put more pressure on banks to assist homeowners stay in their house at an affordable rate.
Contact Atlantis Law LLP for
loan modification assistance today.