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

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The Maine Attorney General's office has 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. That Administrator has not yet been appointed. The Administrator will send claim forms to eligible consumers. This process is estimated to take between 6-9 months to determine who will receive cash payments. This includes people who lost their homes to foreclosure between January 1, 2008 and December 31, 2011. Many news sources have estimated that the average payout will be about $2,000. 

If you believe it will be difficult for the Settlement Administrator to locate you during the next several months, you can contact the Attorney General's office with contact information and your interest in making a claim: 207-626-8800.

Pending Modifications

If you are seeking a loan modification or refinance option, you may be contacted directly by your servicer. Or you can contact them. If you have questions about whether your mortgage is covered by the settlement, you can contact your servicer 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 important links and updates here.

Please note that this settlement does not have any impact on loans owned by Fannie Mae or Freddie Mac. 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

Updated March 28, 2012
PTLA # 679