The epic Mortgage settlement unveiled!
Well, after a long time whereby a large number of borrowers where hurt by foreclosures on their properties, there seem to be some respite. Just a day before; the government announced a whooping 26 billion dollars settlement. However, given the bursting of the mortgage bubble, there has been a lot of confusion about the complex announcement. The solution seems to be in the form a web site– nationalmortgagesettlement that has been set up to answer any and every query about the mortgage settlement.
The part of the announcement that has been the focus of a number of discussions and comments is that the residents of states that did not go in for the settlements shall in no way be eligible for any relief at all. One state that has been thrust into the limelight due to this is Oklahoma. Having never signed the settlement, residents of Oklahoma are plain out of the loop for respite. Moreover, if your loan is borrowed from Freddie or Fanny than, the respite story is not going to be intertwined with you. However, if you do not belong to either of these categories, then you deserve knowing what is in the settlement for yourself.
The banks and lenders who are a part of the settlement deal shall be working out to gauge which borrowers are eligible for the relief. You can go ahead and contact the lenders first hand, but the rule remains that you shall be contacted if found eligible for relief.
Here is a brief outline of what form the respites are supposed to come in:
• Foreclosed home owners- between 2008-2011- shall be given about 2000 dollars as per leading sources and reports.
• There shall be regulations to be followed for the same though.
• Those who are well on track with their payment can get a refinancing done with low interest rates.
• In case you are ‘underwater’ then you can expect modifications or reductions on the principal and the like.
The settlement seems to be the first way to curtail the recklessness that had set in- at least President Obama believes so. Though some are skeptical about how banks shall take the settlement in, this seems to be a logical way to start sorting out the chaos. With the real estate bubble having burst in 2007, a number of homeowners simply chose to give up the responsibly on their mortgages. Since the problems affected both banks and borrowers, it is expected the settlement will bring in some order at least!