Bank of America, Wells Fargo, JPMorgan Chase, Citigroup and Ally Financial have agreed to settlement terms under the National Mortgage Lawsuit Settlement (NationalMortgageSettlement.com). The settlement terms provide $25 billion in relief to distressed borrowers and direct payments to states and the federal government. This historic settlement dates back to the year 2008 and is the largest multi-state settlement since the since the 1998 Tobacco lawsuit settlement. Besides the $25 billion dollar settlement the banks have also agreed to stop “robo-signing” and ”dual-tracking”. Robo signing is rushing homes into foreclosure based upon false documentation. Dual Tracking is when a homeowners mortgage modifications is evaluated while initiating foreclosure proceedings are acted upon at the same time. These are both methods that were previously used by banks to help their bottom line and harm the borrower. You could be a part of the settlement if you are a homeowner in one of the states who joined the settlement. Due to the complex nature of this lawsuit borrowers will not know right away if they are eligible for the settlement. If you were foreclosed on between January 1, 2008 and before Dec. 31, 2011 and are a state settlement member you will be notified by mail.
It is estimated that class members of the lawsuit will receive cash payments of $1,500 to $2,000. Potential class members are encouraged to contact their lending institution about the National Mortgage Lawsuit. This is just the beginning of the end, an end that could go on for years and years. Please note that if you’re a borrower in the state of Oklahoma you are not eligible for this lawsuit settlement. The state of Oklahoma elected not to join the settlement. If you live in Oklahoma and have questions or concerns please contact your state Congressman or Senator. Also it should be noted that loans issued by Fannie Mae or Freddie Mac are not a part of the National Mortgage Lawsuit Settlement.