$25 Billion Settlement For Mortgage Relief: Will You Qualify?

The government’s $25 billion settlement with five of the nation’s largest banks could help up to one million homeowners. About $21.5 billion is earmarked for consumer relief, with the remainder going to state and federal governments.

Distressed homeowners should not expect a check or aid tomorrow, however. According to the government’s National Mortgage Settlement website, it will take up to two months to select an administrator to oversee the process, identifying who is eligible to receive help, and six to nine months to start with the actual housing help.

Help could come via partial loan forgiveness or “principal reduction,” refinancing or, cash payments of up to $2,000 for those who have already lost their home.

The program only applies to homeowners who have or had mortgages serviced by Bank of America, Citigroup, JPMorgan Chase, Wells Fargo and Ally Financial. Those with loans owned by housing giants Fannie Mae or Freddie Mac are not affected by settlement. Homeowners from Oklahoma, the only state to not sign the settlement agreement, are not eligible.

To find out more detail on who’s eligible for relief, Click Here!