As a result of the National Mortgage Settlement that was reached in April by five major mortgage providers, home owners are starting to receive all kinds of letters in the mail telling them they are no longer required to pay, or they don’t have to pay as much as agreed.
The $20 billion foreclosure abuse settlement was reached with defendants as follows:
1) Bank of America, N.A. (“Bank of America”)
Required Amount: $8.57 billion
2) Wells Fargo & Company and Wells Fargo Bank, N.A.
Required Amount: $4.33 bil
3) J.P. Morgan Chase Bank, N.A. (“Chase”)
Required Amount: $4.21 bil
4) CitiMortgage, Inc. (“Citi”)
Required Amount: $1.78 bil
5) Ally Financial, (“Ally”)
Required Amount: $200 million
According to the first preliminary report released in August by a monitor of these banks, $10.56 billion in consumer relief has already been granted. So, If you are struggling to pay your mortgage with one of these servicers and you have not received your letter, you better make a call.
“ If a Servicer’s total commitment is not fully satisfied within three years, it will be required to pay a penalty of no less than 125 percent of its unmet commitment amount,” the preliminary report states.
The relief that the mortgage companies are required to provide may be executed in a variety of forms such as waivers, first and second loan modifications, short sales or forbearance for unemployed borrowers.
Sakina Spruell is the creator of the Keeping It Rich brand of financial literacy products. Visit her at www.keepingitrich.com