What the State Attorneys General Settlement Means for You
If you’ve spent much time listening to the news this week, you’ve probably heard about the settlement reached by 49 state attorneys general and the five largest mortgage providers arising from sloppy foreclosure procedures. And don’t worry, North Carolina wasn’t the lone state that opted out of the settlement agreement.
From the little bit I’ve heard and read, it seems like there could be potential benefits to many beleagured home-owners. The NC Department of Justice has provided the following short explanation of how to take advantage of the settlement.
National Mortgage Settlement
North Carolina played a lead role in the landmark national mortgage settlement with the country’s five largest mortgage loan servicers: Ally (formerly GMAC), Bank of America, Citi, JPMorgan Chase and Wells Fargo.
The settlement will provide as much as $338 million in assistance to North Carolina consumers and will help struggling homeowners by reducing principals and refinancing mortgages at lower interest rates.
It also includes new rules for mortgages that prohibit many past foreclosure abuses, such as robo-signing and inadequate documentation, and will prevent unnecessary and improper foreclosures.
The settlement is expected to help all homeowners, not just those eligible for direct relief, by reducing foreclosures and stabilizing home values.
How consumers can find out if they are eligible
North Carolinians who are eligible for direct relief from the settlement will be contacted by their mortgage servicer or the settlement administrator in coming months.
Because of the complexity of the mortgage market and this agreement, borrowers will not immediately know if they are eligible for relief.
For loan modifications and refinance options: borrowers may be contacted directly by one of the five participating mortgage servicers. You can contact your mortgage servicer directly at the following numbers:
- Bank of America: 1-877-488-7814
- Citi: 1-866-272-4749
- Chase: 1-866-372-6901
- Ally (formerly GMAC): 1-800-766-4622
- Wells Fargo: 1-800-288-3212
For payments to foreclosure victims: If one of these servicers foreclosed on you between January 1, 2008 and December 31, 2011, you may be eligible for a one-time payment. A settlement administrator will send claim forms to eligible consumers. Even if you are not contacted and your loan is serviced by one of the five settling banks, you are encouraged to contact your servicer at the numbers above to see if you are eligible.
If you believe you are eligible for relief under this settlement but are concerned you will be difficult to locate, please contact our office at [email protected] or 1-877-5-NO-SCAM.
For more information about the settlement, please visit: www.nationalmortgagesettlement.com.
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For more than 20 years, the Sasser Law Firm has been helping individuals and business owners sort through financial hardships to see the light at the end of the tunnel. Our North Carolina bankruptcy attorneys are all board-certified specialists, which means we have passed a complex exam, undergone a thorough peer review, and continue to earn legal education credits in this ever-evolving area of law.
