Who does the pact or settlement cover?

Those with loans from Ally, GMAC, Bank of America, Citi Bank, Jp Morgan, Chase, and Wells Fargo. 

What if your loan isnt with them?

Currently only those banks have settled. Nine other banks are in negotiations.

How long before one might get help or assistance from this program?

It’s expected to be about 30-60 days. Banks will most likely reach out to you via letter.

Who qualifies?

Borrowers will get a letter from one of the banks mentioned soon. For more information on who qualifies, check out http://nationalmortgagesettlement.com.

What are the rules around mortgage reduction?

Most bank loans could qualify for a mortgage reduction, however those backed by securities may not. But some will. The deal does not cover loans backed by Fannie or Freddie. The reductions will only work on first and second mortgages.

What about the refinance program?

This only applies to loans by banks. Borrowers must be current on the loans, and owe more than the home is worth. Interest rates can only be reduced to 5.25%

Is there help for those already foreclosed on?

Yes, those foreclosed on in 2008-2011 will be eligible for cash payments. The amount of the payment will vary from $1500-$2000.

How do I file a claim?

In the notice mailed to you, it will direct you to a website to fill out a form.

This post was created by Brenton Hayden, CEO of a minnesota property management company – Renters Warehouse.