2012 Mortgage Settlement

Attorney General Schuette and 47 other states entered into a settlement with the five leading bank mortgage servicers to address allegations of faulty foreclosure processes and poor servicing of mortgages that harmed Michigan homeowners. 

The settlement requires the bank mortgage servicers to provide up to $25 billion in monetary sanctions and relief.  Michigan residents are expected to receive approximately $780 million in benefits, including a $97 million payment directly to the State of Michigan. 

Michigan residents who went through foreclosure with the participating banks in 2008-2011 may be eligible for cash payments.  Current borrowers serviced by the banks may be eligible for loan modifications and other refinancing options.

The settlement also requires comprehensive reforms of mortgage loan servicing to improve customer service for Michigan borrowers. 

Borrowers will not immediately know if they are eligible for relief.  For loan modifications and refinance options, borrowers may be contacted directly by one of the five participating mortgage servicers.  If your loan is serviced by one of the five settling banks, you are encouraged to contact your servicer to see if you are eligible.  The five servicers have set up toll-free hotlines specifically to take questions about this settlement:

    GMAC/Ally               Bank of America                   Citigroup                 Wells Fargo          JPMorgan Chase

    1-800-766-4622          1-877-488-7814                      1-866-272-4749          1-800-288-3212       1-866-372-6901

Citizens are also encouraged to contact a free, state-certified housing counselor through the Michigan State Housing Development Authority to determine whether they are eligible for additional assistance beyond that offered through the settlement. See www.michigan.gov/mshda or call their toll-free hotline, 1-866-946-7432.

Attorney General Schuette is working hard to ensure Michigan citizens have all the information about this important settlement.  Please check back to this website, as updates will be added once more information becomes available.

News/Updates:

• Schuette Praises Governor And Legislature On $97.2 Million Fund To Help Troubled Homeowners

   

• Schuette Announces First National Mortgage Settlement Notifications Mailed to Michigan Foreclosure Victims