The Department of Justice and all the Attorneys General in the USA except Oklahoma made a major settlement with the major mortgage providers earlier this year and you need to hurry up if you are going to get your share. They call it the Global Mortgage Settlement.
“This agreement – the largest joint federal-state settlement ever obtained – is the result of unprecedented coordination among enforcement agencies throughout the government,” said Attorney General Holder. “It holds mortgage servicers accountable for abusive practices and requires them to commit more than $20 billion towards financial relief for consumers. As a result, struggling homeowners throughout the country will benefit from reduced principals and refinancing of their loans. The agreement also requires substantial changes in how servicers do business, which will help to ensure the abuses of the past are not repeated.”
The original deadline of June 15th was extended due to demand in the program and you now have until at least the end of July 2012 to make your application. Under the settlement the banks are supposed to contact you and let you know that you qualify but don’t count on that happening. I suggest you take positive steps to ensure that you are included.
Here are the most important things you need to know about the settlement:
The banks are required to make 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. The ratios used in the program are not the same as in previously available assistance. You may qualify now even though you have not before.
Borrowers who are current get relief! That’s right, current! Borrowers will be able to refinance at today’s historically low interest rates. Standard credit requirements do not apply if you are seeking this modification.
Compensation to people who lost their homes already! You don’t have to waive any rights to get the money and you can use it to sue the bank if they improperly took your home or you may just use it for any purpose you like.
Money is being provided to help fund consumer protection and state foreclosure protection efforts. This means that more homeowners may be helped on the state level even if they don’t qualify under these other programs.
The banks are also giving up a single point of contact so that you no longer have to restart the process with every phone call. Some individual will be assigned to your file.
There is a great website with tons of details and FAQ at http://www.nationalmortgagesettlement.com . The information is all there, now it is up to you to take action on it!