Maryland homeowners who are underwater, as well as those who have been foreclosed on, are about to see a big pay day. MD Attorney General Doug Gansler has announced this morning that anyone in the state of MD that has been foreclosed on by one of the 5 big banks is now eligible for a restitution payment of $1,800-$2,000.
The 5 banks involved in the settlement are:
- Bank of America
- JPMorgan Chase
- Wells Fargo
- Ally Financial Inc.
These banks were specifically targeted for deceptive mortgage lending practices during the housing boom. In addition, those who currently have mortgages with these banks and are underwater may have the option to refinance their homes at the value of their home now, and thereby pay a dramatically lower interest rate in future payments.
The banks goal is to have all of this completed within one year, and the banks will be contacting the home owners to inform them that they are eligible for the program. The Attorney General's office will also be following up with phone calls to affected home owners to inform them of their eligibility.
If you think you may be eligible for this settlement, contact your lender now! There's a limited pool of money here, so the clock is ticking. If you're at risk of foreclosure and want to save your home, this may be your opportunity to do it!