Mortgage Settlement Reached

Government reaches settlement with banks

Wow – what a day! We’re still sorting through how many homeowners will benefit from a settlement between the government and 49 state attorneys general and the big banks over foreclosure abuses.

Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial will pay about $26 billion to reimburse American homeowners and overhaul their industry. Minnesota’s slice of that settlement will be up to $280 million.

Consumers who could benefit are:

  • Homeowners needing loan modifications now
  • Borrowers who are current, but underwater.
  • Borrowers who lost their homes to foreclosure

Those benefits may include direct payments to borrowers, refinancing benefits and principal reductions.

Minnesota Attorney General Lori Swanson has provided some insight into how you can find out if you’re eligible for money:

In Minnesota, borrowers with questions about the settlement can call the Minnesota Attorney General’s Office at 651-296-3353 or 1-800-657-3787 or the Minnesota Department of Commerce at 651-296-2488 or 1-800-657-3602.

Only those borrowers who used the five banks involved in the settlement are eligible. If that means you, you are urged to visit a new government Web site to find out how you can benefit from the deal.

The banks involved have set up toll-free numbers to help homeowners get more information:

  • 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
There’s a great resource online in the Minnesota Home Ownership Center to find information on how to get help with housing and what’s available for homeowners in trouble or affected by foreclosure.
We will continue to post updates on the settlement.
The Minnesota Association of REALTORS® is the largest professional trade association in the state with more than 19,000 members who are active in all aspects of the real estate industry.
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