On February 9, 2012, The Federal Government, Attorney General Eric Holder, and Department of Housing and Urban Development (HUD) Secretary Shaun Donovan, have reached $25 billion agreement with the nation's five largest mortgage servicers: Bank of America Corporation, JPMorgan Chase & Co., Wells Fargo & Company, Citigroup Inc., and Ally Financial Inc., regarding the mortgage loan servicing and foreclosure abuses. The $25 Billion provides financial relief to homeowners, establishes new protection to homeowners, and stops the abuses.
Under the agreement servicers are required to use $20 billion toward financial relief to borrowers, at least $10 billion to reduce the principal on loans for borrowers, who are delinquent, at risk of default, or owe more on their mortgages than their homes current market value; $3 billion to refinance at lower interest rate loans for borrowers are current on their mortgages but owe more on their mortgage than their homes‘ value. In addition, up to $7 billion will be used towards principal forbearance for unemployed borrowers, anti-blight programs, short sales and transitional assistance, benefits for service members who are forced to sell their home at a loss as a result of a permanent Change in Station order, and other programs; according to HUD No.12-027 Department of Justice www.Justice.gov
I think, the relief agreement, between the Federal Government, State Attorneys General, and the nation's five largest mortgage servicers to stop foreclosure abuses, will help many homeowners currently defaulted or soon to default, or owe more on their mortgages than properties current market value.
For more detailed information about the $25 Billion relief agreement to stop foreclosure abuses, please visit
http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2012/SettlementFeb92012
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