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
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:
Bank of America Citigroup Wells
Fargo JPMorgan Chase
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.