For more info, visit http://www.nationalmortgagesettlement.com/
The National Mortgage Settlement claim deadline has expired.
The Independent Foreclosure Review was terminated.
National Mortgage Settlement
Because of the complexity of the mortgage market and the National Mortgage Settlement Agreement, which will be implemented over a three-year period, borrowers will not immediately know if they qualify for relief. So, if you are not sure if you qualify, BE SURE TO SUBMIT YOUR APPLICATION BEFORE JANUARY 18, 2013!
Borrowers from states who did not sign the settlement will not be eligible for any of the relief directly to homeowners. That means borrowers from Oklahoma will not be eligible for any of the relief directly to homeowners because Oklahoma elected not to join the settlement.
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 loan modifications and other forms of loss mitigation nationwide. Eligible borrowers will by contacted by the Servicers and will receive letters offering principal reductions or other modifications starting in June 2012. This modification process will continue for approximately 3 years. 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. Eligible borrowers will be able to take advantage of today’s historically low interest rates by refinancing their mortgage despite their negative equity. Servicers will have to provide up to $3 billion in refinancing relief nationwide.
- Borrowers who lost their homes to foreclosure between Jan. 1, 2008 and Dec. 31, 2011. Cash payments will be distributed to borrowers who receive and return a claim form. There is no requirement to prove financial harm and borrowers will not have to release private claims against the servicers nor will they have to relinquish the right to participate in the independent review process being conducted by federal banking regulators. $1.5 billion is expected to be distributed nationwide to some 750,000 borrowers.