Mortgage Settlement for $25 Billion Dollars….and what do you get?


Hooray, Hooray!!  But wait a minute!  What does the $25 Billion Dollar Mortgage Settlement mean for you?  What do you get?  Mortgage Settlement

You probably know that Chase, Bank of America, Wells Fargo, Ally Financial and Citibank lost the battle with 49 state attorney generals and settled in a dispute over the use of robo-signers, false affidavits, notary fraud, perjury, and other guilty verdicts.  Although this settlement does not fix the entire mortgage industry crash, it will satisfy the mortgage servicing standards for future loan servicing.

California has been awarded the bulk of the $25 billion dollar settlement, granting $18 billion for homeowner assistance.  In addition the state of California has imposed a fine as large as $800 million if the banks fail to uphold the agreement.  Wow!

Again, what do you get?

According to the National Mortgage Settlement Fact Sheet If your mortgage loan is owned by any of the 5 largest aforementioned banks, then your mortgage loan will be included in any of the benefits listed below that you are entitled and here’s what you will get.

Compensation for the Loss of Your Home

  • You can receive minimal compensation for the loss of your home provided your home was lost between January 1, 2008 and December 31, 2011 and will receive a claim form for cash restitution by the attorney generals administrator in your state.
  • If you were a victim of foreclosure and moved out of your home, you may expect to receive an $1,800-$2,000 lump sum payment for the following reasons:
    •  You were a victim of foreclosure and were not offered appropriate opportunities for loss mitigation.
    •  You had filed a lawsuit or requested the lender to produce the note as evidence that they had the right to foreclose and you were presented with fraudulent/altered documents.

Principal Reduction

  • You will be qualified to receive a principal reduction if you owe more on your mortgage than the current fair market value.
  • If you are currently delinquent or at imminent risk of default you will be qualified to receive a principal reduction


  • You will be qualified to receive an interest rate reduction if you are currently paying a much higher rate or if your adjustable rate mortgage will rise higher.  You must meet eligibility criteria once it has been devised.
  • You may contact your bank at the following websites and phone numbers below:

Other Forms of Relief will include:

Who Will Not Receive Benefits

Oklahoma was the only state that did not participate in the $25 billion mortgage settlement; therefore, they will not receive any benefits.

If your loan is owned by Fannie Mae or Freddie Mac, you will not be part of the settlement benefits. Visit the Fannie Mae and Freddie Mac website below to determine if your mortgage loan is owned by one of these investors.

Fannie Mae             Freddie Mac


The $25 billion mortgage settlement will be executed over the next three (3) years

Your Lender Contact 

Contact your lender/servicer listed below for additional assistance and/or questions:

Ally Financial/GMAC:  877-247-2559

Bank of America:  877-488-7814

Chase:  866-372-6901

Citibank:  866-272-4749

Wells Fargo:  800-288-3212

To receive additional information regarding the mortgage settlement and the implementation of the proposed agreement, follow the links below:

About the Settlement


Just My Thoughts

It is unfortunate that the mortgage crisis has left so many families in  devastating and tumultuous positions.  The amount of compensation that is awarded is an insult in comparison to the pain and injustice homeowners have suffered.  Consequently, I suggest to those of you who lost their homes to continue to FIGHT if you are a victim of mortgage fraud.  File a lawsuit… it’s not over for you.  Also, please accept my sympathy for the loss of your homes.

I would appreciate your comments and thoughts on this topic, please reply.


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