Law Office of Paul Petrillo
Contact Us Today 603-635-4149
Menu Contact

Mortgage relief running ahead of schedule

Five banks were accused last year of using faulty documents for evicting homeowners. The banks settled the case by an agreement to provide $38.7 billion in relief to homeowners. Twenty-five billion of the funds was to be used to help homeowners that were in a housing crisis situation. The program appears to be going forward, even ahead of schedule. However, only about 80 percent of the funds have been used so far.

The banks listed in the settlement were Citigroup, Wells Fargo, Bank of America, JPMorgan Chase and Ally. The requirements of the settlement state 60 percent of the funds must be used for consumer relief. At the end of last year, they had already reached the 60 percent mark. Almost 650,000 borrowers had been assisted by June 30.

The type of help the banks provide determines how the percentages are calculated. Loan modifications appeared to be around 2 percent of the consumer relief activity since 2009. Short sales earn only 20 - 45 cents per dollar, and principal reductions earns the bank 55 cents per dollar.

The banks must reach $19 billion in debt relief by March of 2015. They are currently at $15.4 billion. The remaining portion of the $25 billion is supposed to go to cash payments of those who have already lost their homes to foreclosure.

Many people have been affected by the housing crisis, and it is no longer a stigma to find yourself in foreclosure. However, there are many options out there to assist homeowners and keep them from losing their homes. First, speak with your mortgage holder. Many of them are willing to work with you on a loan modification. If you are past that point and headed to foreclosure, you may still be able keep your home by contacting a bankruptcy attorney. They have many options available.


Source: 
nytimes.com, "Settlement Report Finds Banks Giving Timely Mortgage Relief" Shaila Dewan, Oct. 16, 2013

No Comments

Leave a comment
Comment Information

Start Your Case Today

Whether you have a family law issue, an estate planning question or are considering bankruptcy, I can help you find a sustainable solution that provides relief and hope. Schedule your consultation at my Nashua, New Hampshire office today by calling 603-635-4149 or by sending us an email.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

email us for a response
Law Office of Paul Petrillo