Will the New Mortgage Settlement Bring YOU Relief?

Wondering if you can avoid a short sale with the new Mortgage Settlement? Let’s take a very simple look on the program as it stands.

There are three main categories of people who will be aided under the settlement, according to the site:

• Homeowners who need loan modifications to stay in their homes. Loan servicers have agreed to write off some principal in these cases, which would help homeowners refinance at lower monthly payments.

• Borrowers who are current on payments but underwater, meaning they owe more than their home is worth. Servicers will help some of these owners refinance at current rates, which are at or near record lows.

• Borrowers who have lost their homes to foreclosure. Some of these former owners will be eligible for payments. $1.5 billion will be distributed to 750,000 borrowers, which works out to $2,000 per person.

It may take six to nine months for a borrower to be notified that they are even eligible and then up to three years for payment and other relief to be made. In the meantime, the The Mortgage Forgiveness Debt Relief Act and Debt Cancellation is scheduled to expire at the end of 2012.

If you are underwater on your home or struggling to pay your mortgage, contact us NOW to see if a short sale is the right choice for you.

Click HERE for more information on the Mortgage Settlement