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. 

Many Michigan residents who went through foreclosure with the participating banks in 2008-2011 were eligible for cash payments.  Additional borrowers serviced by the banks were 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. 

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 for help.  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.

 


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