A year of negotiations is coming to an end. Federal and state representatives along with five major banks have announced their decision to award the $25 billion settlement. The settlement is for foreclosures and mortgage loans where consumers were subject to abuse. Homeowners had to move when their homes were seized, but some of these repossessions may have been less than legal.
All states except Oklahoma will be part of the settlement. The Bank of America, Citibank, Chase, Wells Fargo and Ally Financial will be a part of the settlement process. Some of the smaller banks may join in later with regards to mortgage issues where people may have had to relocate due to foreclosure. Any borrower whose loans were owned by the participating banks from 2008 to 2011 and were foreclosed on can take advantage of the settlement.
The settlement will be divided in a few ways, but some of the money will be given to those homeowners in order to help them move or relocate into a new home. Cash payments will be a part of the option if the homes have already been sold. The money is meant to help them get a new home in order to start again. Some of the money will go towards assistance where there were short sales or unemployed borrowers involved. The good news is that there is help on the way for these homeowners that have had to suffer more than necessary.
Jon Huser