What are the details of the mortgage settlement? How many states are involved? What are the costs?
Millions of homeowners with troubled mortgages may be impacted
Millions of homeowners who are facing foreclosure or who have upside down mortgages will benefit from the mortgage settlement announced in February 2012, but there are still a large number of underwater homeowners who are not going to see the relief they expected from banks and lending institutions. It should be noted that the settlement does not release banks from class action claims, lawsuits related to how mortgages were bundled into securities, or any criminal wrongdoing on behalf of the banks themselves. There can still be individual lawsuits brought against banks for specific cases of wrongdoing or illegal behavior. If more banks choose to participate in the settlement, the $25 billion price tag could rise to more than $40 billion dollars over the next three years.
Notes and Special Information
Special note: If your mortgage is settled you may still see a change in your credit rating, but since people who missed payments get priority, your credit probably is not that great already. As it turns out, if you have a Freddie Mac, Fannie May, or FHA loan, you may not get any mortgage relief at all under the deal with the banks, but you may be able to get relief under a different deal if it is agreed to by the Obama administration.