National Mortgage Settlement: Is there help for you?

The recent settlement with five of the largest banks in the United States will benefit many struggling homeowners in Vermont. The banks are Bank of America, Citigroup, GMAC/Ally, J.P. Morgan Chase, and Wells Fargo. The settlement covers loans serviced by the five settling banks’ loan servicers.

However, not every situation will fall under the terms of the settlement. Some basic information on the settlement is set out below. You can also visit the National Mortgage Settlement website or the Settlement Monitor’s website for more details.

I have a problem with my mortgage. What can I do?

If you are having difficulty with your mortgage or mortgage payments, with a loan modification application, or with being sued in foreclosure while a modification application is being processed, the first step is to contact your servicer. There are a variety of options available to assist homeowners with their home loans. Under the settlement, the following websites and telephone numbers have been set up to assist homeowners with mortgage issues:

Bank of America: 877-488-7814

Citigroup: 866-272-4749

GMAC/Ally: 800-766-4622

JPMorgan Chase: 866-372-6901

Wells Fargo: 800-288-3212

Your first step should be to contact your servicer at the number above for assistance.

I contacted my servicer but cannot seem to get my issue resolved. Can you help?

If you have a current issue with one of the five banks or its servicer, and you have tried without success to resolve the issue by calling the appropriate number listed above, you may contact us using our Mortgage Settlement Complaint Form. You will need to provide:

Your name, loan number and street address.

What bank holds the loan (if you know).

The name of the servicer.

A short description of what happened and the current status.

What you would like to accomplish.

We will contact the servicer and ask that its staff work with you to resolve the issue. Please note that we will be forwarding the information you provide on the form directly to the servicer.

I am having trouble paying off my mortgage. What financial assistance is available to me under the settlement?

Homeowners with loans serviced by one of the five listed banks and who are still in their homes may be eligible for one of two types of assistance:

Homeowners who are current on their mortgage payments but who are “underwater” (that is, they owe more on their loan than their house is worth) may be eligible to refinance their loan at a lower interest rate.

Homeowners who are behind in their mortgage payments may be eligible for relief from a “menu” of assistance that the banks may choose from— including principal reduction, waiver of deficiency balance, relocation assistance, deed-in-lieu, and short sale.

The banks will be responsible for identifying qualifying homeowners; but if you think that you may be eligible for either type of assistance described above, call your servicer at the listed number and ask to be considered for that.

My servicer foreclosed on my home. What help is available for me?

Under the settlement, some consumers whose homes were sold after foreclosure between 2008 and 2011 may be eligible to receive a cash payment under the settlement. The servicers will identify those consumers who qualify, and a “settlement administrator” will contact them. This process will take some time.

Did the settlement require me to give up any legal rights?

No. Homeowners and foreclosed homeowners did not give up any legal rights as a result of the settlement. You should consult with a lawyer if you want more information on whether you have a legal claim, as an individual or in a class action, against any of the settling banks or servicers.