The federal-state mortgage servicers agreement announced today is complex and will be carried out over a three-year period. This means that you will not immediately know if you are eligible for relief under the deal.
Oklahoma did not participate in the settlement, so Oklahoma homeowners are not eligible for any of the benefits.
The settlement provides assistance for:
- Homeowners needing loan modifications now, including first and second lien principal reduction. The servicers are required to work off up to $17 billion in principal reduction and other forms of loan modification relief nationwide.
State attorneys general anticipate the settlement’s requirement for principal reduction will show other lenders that principal reduction is one effective tool in combating foreclosure and that it will not lead to widespread defaults by borrowers who really can afford to pay.
- Borrowers who are current, but underwater. Borrowers will be able to refinance at today’s historically low interest rates. Servicers will have to provide up to $3 billion in refinancing relief nationwide.
- Borrowers who lost their homes to foreclosure with no requirement to prove financial harm and without having to release private claims against the servicers or the right to participate in the OCC review process. $1.5 billion will be distributed nationwide to some 750,000 borrowers.
Timeline
- Over the next 30 to 60 days, settlement negotiators will be selecting an administrator to handle the logistics of the settlement and monitor compliance.
- Over the next six to nine months, the settlement administrator, attorneys general and the mortgage servicers will work to identify homeowners eligible for the immediate cash payments, principal reductions and refinancing. Those eligible will receive letters.
- This settlement will be executed over the next three years.
Where to go
For loan modifications and refinance options, borrowers may be contacted directly by one of the five participating mortgage servicers. Keeping in mind the timeline above, you may contact the banks directly if you need additional information:
- Ally/GMAC: 800-766-4622
- Bank of America: 877-488-7814 (Available M-F 7am - 9pm CT and Saturdays 8am CT - 5pm CT
- Citi: 866-272-4749
- JPMorgan Chase: 866-372-6901
- Wells Fargo: 800-288-3212 (Available M-F 7 a.m. to 7 p.m. CST)
Loans owned by Fannie Mae or Freddie Mac are not impacted by this settlement. You may visit the following websites to learn if your loan is owned by either Fannie Mae or Freddie Mac:
These sites will also include links to information about mortgage and foreclosure programs you may be eligible to access. You may also call 1-888-995-HOPE (4673)
For borrowers who lost their home to foreclosure between Jan. 1, 2008 and Dec. 31, 2011, a settlement administrator designated by the attorneys general will send claim forms to persons eligible for cash restitution.
If you believe you are eligible for relief under this settlement but are concerned you will be difficult to locate, please contact your Attorney General’s Office.
Trevor D Francis (Thu, 09 Feb 2012 22:41:21 +0000): 1st deal was banks were given money and kept it because you had to be behind in payments. Now we are behind they keep the money because we have to be current. The banks win again. The home owner looses again. What's new. Why does no one see this?
Jack Straw (Thu, 09 Feb 2012 23:29:35 +0000): Perhaps it's because your post doesn't make sense.
Randy Nesbitt (Thu, 09 Feb 2012 23:35:54 +0000): Trevor - The banks which were bailed out have paid back the monies. If you attempted to get a loan modification it was required that you be behind on your payments. Is this what you were thinking about? If not then I too am confused.
Marianne Sippel (Fri, 10 Feb 2012 00:35:57 +0000): Well, I tried for a modification over a two year period. Got the run around with B of A fretting and distressed. I got one of the original bad boy loans from Country Wide. They said they would be contacting me, never did. Then they said you have to be60 days behind in your payments, so since I was unemployed at the time, that was easy. But then I got scared of the vulnerability I felt as foreclosures started to explode. So I begged and borrowed and paid up. So, I started educating myself about what was really going on here and when I found out I scurried under the nearest rock because now I was definitely underwater and I didn't want to have anyone looking at my file, you know the one they could never locate before. I think had my home been worth more it would have been sold right from underneath me. It's funny how they seem to receive my payment every month but not the three or four packets I sent in to modify. I have been living in fear for so long and have such a distrust that I find this mortgage servicer's agreement extremely hard to believe, frankly, I'm horrified that there will be yet another twist that will disqualify me and then it will be too late to find a rock to hide under. I'm underwater because of the freakin loan I was sold and didn't understand back in 07. I just want to modify to a decent loan and know I'm not headed to the trailer park. I am working now making 3xs what I was back in 07. What are my chances with this? What hope can be reconciled now? If this is for real how will I trust it? Gee, the banks get to decide who's eligible...hummmm.
Forest Cooper (Fri, 10 Feb 2012 03:22:43 +0000): Whine, whine, whine. The Federal govert pressured banks to make poor quality loans. You people signed very expensive mortgages for overpriced houses stupidly thinking the good times would last and last. When the predictable (to reasonable people) happened the financially immature had thier rude awakening. Rather than admintting your foolishness it's time to blame someone else and let BIG GOVERNMENT give you another freebie. Shame on you. Stop whining, take your medicine, learn your lesson and take personal responsibility.
Jamie Carr Harrington (Fri, 10 Feb 2012 16:12:56 +0000): Sir, I understand how you would think that these people are dumb. I am a home owner who is not underwater and NOT anywhere near being underwater. However, my husband and I had to fight for every ounce of information when we were trying to buy our house. We knew what we could afford and we had mortgage sellers doing everything they could to get us to put more money into bigger homes. They flat out lied to us. Even tried to get us to commit loan fraud. However, we pushed back. We weren't sure what we were doing, We just knew we wanted that American dream. We reported the woman trying to get us to commit fraud and NOTHING happened. We were told, we must have misunderstood her. NO WE DIDN'T! I'm not saying everyone deserves a bail out, but I do know that those people selling houses and offering mortgages were using tricks of the trade to get unsuspecting people to give over more than they could afford for a chance to live like a normal human being. Most people buy maybe one or two houses in their lifetime. We rely on those who sell them everyday to help us through the mounds of paperwork and information. When those people flat out lie to you, it makes it harder to navigate. As I said, I've paid my bill every month. I'm not underwater, nor am I even close, but many people were scammed. If we had not stepped back and really worked to figure out what our mortgage broker was doing, we may have been in the same situation as everyone else. We were just lucky to be smart enough to dig deeper and make sure that what she was telling us, was what was actually true. 
'Jeanine Mercer' (Mon, 13 Feb 2012 20:09:13 +0000): Who's whining about Robo-signers. Fraud is fraud. If you would have done what the banks did, you would be in jail!
Victoria Petruzelli Bolduc (Fri, 10 Feb 2012 04:31:59 +0000): Hey Trevor... I know exactly what you are saying... and been there done that... still to no avail! The odd thing is that the banks get $1800 per loan application to process them and they have underwriters stamping them denied without even reading them... nice eh. The government needs to give the people the mortgage in payments and stop making the banks richer and the people poorer! Good luck my friend... God Bless. Tora
PS applied for first mod with BOA July 2007 got in May 2009 after months of arguing. applied for second one they promised in June 2010 and it took me until December 2011 just to get the paperwork. Funny thing is they denied me.
for being able to pay a $2200/mo. mtg on $2600 a month net income... geesh do you think I was one of the unread stamp and sign cases... well to make it short I appealed their decision and they denied me again and with my persistence and non acceptance of their decision... they asked me for private medical records from my physician to prove I am permanently disabled on SSD. If they could learn how to read they would know my disability started in 2002. And they are violating HIPPA and my privacy by law as well as probably the ADA.