You’ve heard the news: thanks to a national mortgage settlement five major banks will pay out $25 billion to help troubled borrowers in 49 states.
The question is whether you’ll reap any of those benefits. Use this guide to decide—and plan accordingly.
The settlement affects people whose mortgages are serviced by Ally/GMAC, Bank of America, Chase, Citi and Wells Fargo. You may be eligible if…
Your home is worth less than you owe. If you’re delinquent or at serious risk of defaulting, the principal amount you owe may be reduced. If you’re current, with an interest rate higher than 5.25%, you may be able to refinance.
- You’re the victim of an unfair foreclosure. $1.5 billion will be distributed among 750,000 qualified borrowers.
What can you do now? For now, sit tight. Over the next nine months, officials will identify and reach out to borrowers who need help. It will take about three years for the money to be distributed.
If you don’t qualify, or if you’re short on time or cash, put on your thinking cap now and explore other options