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Understanding the Robo Signing Mortgage Settlement Offer

March 23, 2012 | Comments: 0 | Views: 100

The National Mortgage Settlement with the five largest mortgage lenders have been announced. Let's review some of the finer points of the settlement and discuss how this 25 billion dollar settlement will help homeowners.

1) Over a 3 year period the lenders will begin reviewing for eligibility of homeowners who may be awarded a cash restitution if they lost their house to foreclosure within this timeline, January 1, 2008 to December 31, 2011.

2) Your mortgage must be owned by Fannie Mae or Freddie Mac, this means the government institution of Fannie and Freddie bought the rights to own your mortgage. This is not the servicer's who sends you monthly mortgage statements.

3) Only States that participated in the Settlement will be offered help under this settlement. So far Oklahoma is the only state who will not qualify for assistance as they did not partake in the lawsuit.

4) The five major banks included in this settlement are: Bank of America, Citi, JP Morgan Chase, Ally/GMAC, Wells Fargo.

5) 10 billion dollars will be allotted for principal reductions relief to current homeowners who are under water.

6) 3 billion dollars will be allotted for refinance relief for homeowners.

7) Service Members will also benefit from the mortgage settlement if they were wrongfully foreclosed on. The SCRA Act protects service members and was enacted on December 1, 2006.

8) Service Members may also find relief if they were charged interest over 6% from January 1, 2008 to present.

Many Lenders are also now announcing new programs to help struggling homeowners and as we predicted more and more lenders will be offering principal reductions as a means to help the housing market recover and also homeowners.

Under the recent changes to HARP 2.0 program established by the Obama administration, the program highlights are as follows:

1) must have a good 12 month payment history

2) LTV higher than 80%

3) Mortgage backed and owned by Fannie Mae or Freddie Mac

4) If you refinanced under HARP previously you would not be eligible

5)Fannie Mae / Freddie Mac would need to be the owner of the mortgage after May 31, 2009.

If you are interested in refinancing under the HARP program you should contact a licensed mortgage broker and contact your lender.

The above are only some of the highlights to the settlement and to the HARP program it will take some time to see how these programs will really impact struggling homeowners.

Check back for more important articles and updated news about foreclosure national wide and specifically Florida.

Source: EzineArticles
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