Over the past few years there have been so many companies and people preying on homeowners in financial trouble. Wether it is the sale of a land trust, mortgage modification, mass joinder legal action against a lender, or whatever. The schemes and tricks never seem to end.
But thanks to a reader who let me know about a recent Boston Globe article, apparently the benefits of the national mortgage settlement are starting to pay off for some consumers.
The settlement with Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co., Citibank, and Ally Financial Inc., owner of GMAC Mortgage, requires about $10 billion in principal write-downs over the next three years. Between March 1 and June 30, about 12,500 homeowners nationwide had loan debts cut, according to the oversight office. Another 28,000 were granted trial loan modifications with principal reductions, the report said.
In Massachusetts, 290 homeowners received permanent mortgage reductions as part of the settlement — averaging $70,000 in savings, state officials said. In addition, 308 Massachusetts families this year have received principal write-downs as part of a 2011 settlement between the Massachusetts attorney general’s office and mortgage lender Option One. Borrowers in those cases received an average credit of $133,000, state officials said.
For more information, read the rest of the article here.