Federal and State officials announced a settlement of more than $25 billion with five of the nation’s banks today concerning the banks’ defective and fraudulent foreclosure practices. The settlement attempts, albeit in a limited manner, to help negatively affected borrowers by reducing the amount they owe on their mortgages, and/or lowering interest rates, and/or paying money to homeowners whose homes have already been lost to foreclosure. Will this settlement help the troubled housing market in Maryland? Maybe. Given the failure of past government programs to help solve homeowners’ problems, most notably the Home Affordable Modification Program (HAMP) coupled with the banks’ past reliance on workers with minimal qualifications or work experience we will just have to wait and see just how effective or ineffective the results will be. If you have a mortgage with one of the five banks currently signed on to the settlement you may call one of the following toll-free numbers: Ally/GMAC 800-766-4622; Bank of America 877-488-7814; Citi 866-272-4749; JPMorgan Chase 866-372-6901; Wells Fargo: 800-2883212.Visit a new government website at http://www.nationalmortgagesettlement.com/. Maryland Attorney General Gansler is setting up a call center staffed by 10 people who can be reached at 888-743-0023. Let’s hope that all 40,000 homeowners that Mr. Gansler estimates are eligible for the program do not call at the same time. More about this settlement later in another blog as the program’s success and/or failure evolves.
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