The Big Mortgage Settlement: What’s In It For You?*

In a landmark settlement, the nation’s five largest banks – Bank of America, JPMorgan Chase, Wells Fargo, Citibank, and Ally/GMAC — have agreed to pay out $25-26 billion dollars to rectify some of the mortgage abuses of the last few years.  But what does it mean to you?

National Mortgage Settlement BanksIf you have a Fannie Mae or Freddie Mac-backed mortgage, you’re not included in the settlement. Don’t know if Fannie or Freddie owns your loan? Look up Fannie Mae loans. Look up Freddie Mac loans.

If you’ve already lost your home to foreclosure, you may be one of about 750,000 borrowers eligible for up to $2000 in payments without proving harm or relinquishing other private or class action claims.

If you’re having difficulty making payments, you may be eligible for a loan modification or workout. Or if you’re current in you’re payments, but underwater — you owe more than your house is currently worth — you may qualify for refinancing at today’s low rates. These benefits are made possible under the settlement because the the banks have agreed to write off a part of the mortgage principle in certain cases.

If you’re eligible for aid under the settlement — which will be executed over the next three years — look for notification by mail within the next nine months.

For more complete details, links and references check out the new National Mortgage Settlement website.

*This blog post originally produced by The Bryant Hills Group for Vet2Vet Realty.

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