Some Homeowners to Benefit from State's Settlement of Court Case with 5 Largest Mortgage Servicers

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In March 2012 the Maine Attorney General's office announced a major court settlement with the five biggest mortgage servicers. The case charged these companies with various illegal practices:

• Wells Fargo
• Chase
• Bank of America
• Citi
• Ally/GMAC 

This is a $25 billion settlement nationwide. Maine's share is $21 million. If you qualify, you stand to benefit, even if  is not everything you feel that you're owed.

Two groups of homeowners will benefit directly from the settlement. You MAY be eligible if:

1. you are seeking a loan modification,  or
2. your home has already been foreclosed upon

The banks have three years to complete their duties under the agreement, and they believe it will take 6-9 months to identify eligible borrowers.

Past Foreclosures

A pool of funds for victims of predatory foreclosure practices will be paid out by a Settlement Administrator. The Administrator sent out post card notices to eligible consumers on September 17, 2012. This includes people who lost their homes to foreclosure between January 1, 2008 and December 31, 2011. The estimated pay out to  is $1,500 to $2,000 to each eligible consumer. 

If you received a post card during the week of September 17, 2012, pay attention to all of the instructions that will follow.  Call the Administrator if you need help with making your claim. Get more details here.

Pending Modifications

If you are seeking a loan modification or refinance option, you may be contacted directly by your servicing bank. Or you can contact them. If you have questions about whether your mortgage is covered by the settlement, you can contact your servicing bank at:

• Wells Fargo: 1-800-288-3212
• Chase: 1-866-372-6901
• Bank of America: 1-877-488-7814
• Citi: 1-866-272-4749
• GMAC: 1-800-766-4622

You can also check www.nationalmortgagesettlement.com.  Information will be posted there as it becomes available and as the programs are implemented. Pine Tree Legal will also post updates here, as we receive more information about the settlement.

NOTE: Loans owned by Fannie Mae and Freddie Mac do not allow for principal reductions (although other forms of help apply to these loans). You can use the Fannie Mae loan lookup tool and Freddie Mac loan lookup tool to find out if either of these agencies owns your mortgage. 

Read more details from the Maine Attorney General's Office

More foreclosure prevention resources for homeowners

Please Note: Pine Tree Legal was not involved with this lawsuit or the settlement. We are only passing along information we have received from HUD officials and the states' Attorneys General. If you have questions about your eligibility, contact your servicing bank or the Maine Attorney General's office: 207-626-8800.

Updated September 18, 2012
PTLA # 679