Among other topics, this article discusses the numbers of homeowners who may benefit from the recent bank settlement, which, relatively speaking, may not be many.
The settlement between the government and five of the country’s largest mortgage lenders has given hope to many homeowners that they may be able to resolve their mortgage issues. If your mortgage is owned by Ally Financial Inc., Bank of America Corp., Citigroup Inc., J.P. Morgan Chase, or Wells Fargo and Co., you may be be able to qualify for mortgage relief including a mortgage write-down or debt forgiveness. Borrowers in Florida, which had the second-most foreclosures, will receive an estimated $7.6 billion in benefits from loan modifications, including principal reduction, according to state Attorney General.
However, principal reductions and other loan modifications will only be accessible to a small number of borrowers because the deal does not include loans owned or guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. The primary beneficiaries of any principal reductions, loan modifications or refinancings are a universe that excludes 92 percent of mortgage borrowers.