We are seeing some pretty interesting news today on the National Mortgage Settlement which is being touted as “Landmark Settlement & Landmark Relief” to home owners in need of assistance.
On the surface it sounds huge. Ally/GMAC, B of A, Citi, JP Morgan Chase & Wells Fargo are in the process of providing eligible borrowers with $25Billion dollars in loan modification, principal reduction & monetary compensation. On paper that looks significant. However, consider that the max payout to those who lost their homes (who are eligible) is going to be $2,000. Principal reductions may be less per borrower, and loan modifications could stack up for some time.
Consider some of the finer aspects of the timeline:
· Over the next 30 to 60 days, settlement negotiators will be selecting an administrator to handle the logistics of the settlement and monitor compliance.
· Over the next six to nine months, the settlement administrator, attorneys general and the mortgage servicers will work to identify homeowners eligible for the immediate cash payments, principal reductions and refinancing. Those eligible will receive letters.
· This settlement will be executed over the next three years.
This settlement, while enticing to many – only scratches the surface of cash flow problems for many Home Owners seeking assistance. We are still seeing interest rates at historic lows, and while many areas have seen widespread home value reduction, the Northwest has been less affected than much of the country. Many Home Owners feel as though refinancing in order to lower their current rate & monthly payment is not an option, but we continue to refinance our neighbors into more manageable loan options while freeing up cash-flow immediately.
Don’t wait 6 to 9 months to find out if you may receive assistance in the next three years. Contact me today for a FREE, NO OBLIGATION MORTGAGE ANALYSIS and find out if relief is right around the corner.
Mark Ruhl
NMLS #105591 | Loan Officer
Mortgage Express
Direct 503.517.9341
Cell 503.317.7620
Fax 503.961.8694
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