JPMorgan Settlement Brings Mortgage Relief

by Dina L in Baltimore, Maryland and by Mary Ellen R. in Prince Federick, MD

Breaking National Mortgage News - $13 Billion Settlement Between the Justice Department and JPMorgan Chase: Are you a homeowner who obtained mortgage financing before January 1, 2009 with JPMorgan, Bear Stearns, or Washington Mutual? If so, you will be interested to know about the $4 billion allocated to help homeowners injured by these three lending institutions.

Another category to benefit from the mega settlement that holds JPMorgan accountable for massive misrepresentations to Fannie Mae and Freddie Mac are targeted neighborhoods with blighted properties, for example, the hard hit Detroit.

How Homeowners Benefit - Modifying and Refinancing Mortgages

The relief will come in the form of loan modifications and refinances, decreasing monthly mortgage payments with today's low interest rates. Although not set in stone as of November 20, 2013, there are hints that the settlement will include principal reductions.

How Home Buyers Benefit - Waivers and Credits

Not to be ignored, closing cost waivers and credits up to $10,000 will be made available to home buyers in areas that have been negatively affected by the recession. With the intent to strengthen communities further, these borrowers will be underwritten with more relaxed underwriting guidelines. Now for Ask Kate questions from two homeowners with settlement inquiries...

Avoiding Foreclosure

By Dina L in Baltimore, Maryland

Hi Kate!

My question is that I have an FHA loan and the servicer is Bank of America. I am currently 60 days past due and working to make the payment so I won't be 90 days past due.

Do you think I would qualify with my FHA loan for the National Mortgage Settlement?

Also, do you think foreclosure bankruptcy is a good option? Dina

Ask Kate answers: Avoiding Foreclosure

Hi Dina,

Bank of America has stated that FHA loans were not included in the 2013 National Mortgage Settlement, as well as VA home loans and mortgages backed by Fannie Mae and Freddie Mac.

Regardless, you should contact BOA loan servicing for a payment modification and principal reduction of your loan amount. If possible, I would do everything (within reason) to avoid foreclosure. However, there are times when that is not possible, regardless of heroic attempts on the part of the homeowner.

In fact, you may relate to Deborah's 2-part story at...

1. Part I: Short Sale vs Foreclosure - Agony of Homeownership
and

2. Part II: To Reaffirm or Not to Reaffirm a Mortgage after Bankruptcy

Don't miss her progress in the comment section on each page.

Best wishes,

Illegal Home Foreclosure

By Mary Ellen R. in Prince Federick, MD

Kate,

I had a home built in 1997 and paid my mortgage until my home was foreclosed on illegally.

I am asking how can I receive or request a mortgage settlement claim form? At the time I resided in Cedar Hill, Texas. Thanks.

Ask Kate answers: Illegal Home Foreclosure

Hi Mary Ellen,

If you believe that you are eligible for relief and did not receive it, the National Mortgage Settlement administrator, Rust Consulting, can be contacted at 866-430-8358.

You can also contact a free HUD-approved housing expert at 800-569-4287 for help. Read this before calling one of the housing counselors for the best results.

Additionally, here are the phone numbers for the five loan servicers involved in the National Mortgage Settlement.

• Ally/GMAC: 800-766-4622


• Bank of America: 877-488-7814


• Citi: 866-272-4749


• JPMorgan Chase: 866-372-6901


• Wells Fargo: 800-288-3212

Somewhat confusing, Rust Consulting is also the administrator for the Independent Foreclosure Review Payment Agreement. For this particular settlement, call Rust Consulting at 888-952-9105 for payment information.

Read more about the 2013 mortgage settlement news and resulting discussions.

Best wishes,

Ask Kate about Your Mortgage

Anyone can ask Kate a question or add a comment at the bottom of this page.

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