Friday, February 10, 2012

What Does the National Foreclosure Settlement Mean for Virginia Mortgage Holders--and Everybody Else?

49 state Attorneys General have reached a $25 Billion foreclosure fraud settlement with five big banks:  Ally/GMAC, Bank of America, Citi, JPMorgan Chase, and Wells Fargo.

Info for All Taxpayers:
Info For Virginia Mortgage Holders:
  • Video: Va's AG Cuccinelli on Commonwealth Participation.
  • Virginia is #8 of States with negative equity.
  • The Charlottesville Albemarle Area is rife with effective negative equity.
  • The banks have three years to enact relief.  Three years.  Which means that in many cases, they won't have to.
Virginia will get $479.6 M: 
  • $31 M to those who experienced foreclosure abuses from 1/1/2008 to 12/31/2011.  
  • $409 M will be used for principal reduction and mortgage modifications.  
  • $69.6 M will be paid to the Commonweath as penalty.
 What it may do:
  • Up to 15,000 mortgage holders may qualify.
  • Those who have had houses lost to foreclosure may qualify for a payment, spread over three years, of $800-$2k.
  • Mortgage holders who owe more than the house is worth may see their principal reduced by up to $20k.
You can see if you qualify at the National Mortgage Settlement website:
The Washington Post has an easy-to-follow narrative about who may be eligible.
See also Attorney General Ken Cuccinelli's website.

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