Mortgage Servicers Report Providing $26.1 Billion In Relief

Mortgage servicers who are part of the foreclosure settlement reached with forty-nine Attorney Generals are reporting that they’ve provided $26.1 billion in relief to homeowners struggling to avoid foreclosure. The mortgage servicers involved in the settlement include Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co., Citigroup Inc. and Ally Financial Inc. According to their reports, the relief they provided was through short sales and reduced monthly payments. But the settlement’s monitor has not verified the mortgage servicers’ claims.

“The relief the banks have reported is encouraging,” he said. “But it is important to remember that no obligations will be met until I have reviewed, confirmed and credited them.”

It’s also important to realize that it is not enough for the mortgage servicers to provide foreclosure relief however they see fit. Per the terms of the settlement, at least 60% of the relief servicers provide must come in the form of mortgage principal reductions that help homeowners avoid foreclosures. At this juncture it seems that at least 50% of the relief is in the form of short sales, not principal reductions. For homeowners who would prefer to remain in their homes and who can afford their home mortgages, principal reductions will help to bring their property in line with realistic values and reduce their monthly payment amount.  And that’s a solution that looks good for homeowners and the housing industry overall.

Sometimes people want to release equity in their homes because they need cash for a particular purpose. This short guide looks at how certain types of mortgage will allow you to do exactly this.