You will find a great deal of information on the National Mortgage Settlement here. The settlement was reached with Ally/GMAC, Bank of America, JP Morgan Chase, Wells Fargo, and Citi. This means that if your loan is being serviced elsewhere, you’re out of luck. Remember that
HELP IS FREE AND YOU SHOULD PAY NO ONE FOR ASSISTANCE IN OBTAINING WHAT YOU MAY BE ENTITLED TO UNDER THIS AGREEMENT.
Here’s how to find out if you’re eligible; click here. It looks like the entire process from selecting administrators to getting the money into the hands of the consumers is likely to take nearly three years to complete. Be sure to check out the Fact Sheet, which provides a broad overview of where the funds are to be distributed. Great news is that California has already selected UC Irvine Professor and Consumer Law Expert, Katie Porter as it’s watchdog, according to this Los Angeles Times article.
Now let me put this into some perspective for you. During the mortgage boom and leading all the way up into the housing crash in 2008, there were more than 95 million mortgages that were turned into asset-backed securitized bonds and sold on the bond market. So far, HAMP, HAMP 2.0, HARP, and any other version of Obama Modification programs have only help maybe 2 million homeowners. This national settlement may help another 2 million homeowners, but what about the remainder of home owners or some 80 million other home owners who haven’t yet lost their homes to foreclosures? What will happen when these other mortgages begin to adjust and their payments become unaffordable? What will happen then?
This is an absolute failure and I couldn’t agree more with Barry Ritholtz over at the Washington Post who wrote, Foreclosure settlement a failure of law, a triumph for bank attorneys.