Early this year (2012), five of the largest mortgage servicers (Bank of America, JPMorgan Chase, Wells Fargo, Citigroup, and Ally) entered into a $25 Billion settlement with the Attorney Generals from 49 states (Oklahoma is the only state that didn’t participate). Out of this settlement, Nevada’s share was an estimated $1.5 Billion.
In addition to the $25 Billion National Settlement, Nevada’s AG was able to negotiate an additional $780 Million agreement with Bank of America. $30 Million of this separate settlement will be set aside for consumer protection efforts, while the other $750 Million will be used to provide relief on principle payments and short sales for Bank of America borrowers.
As for the $1.5 Billion, Nevada will use those funds as follows:
– $42 Million will go towards assisting borrowers who are upside down on their mortgage.
– $57 Million will be set aside for qualified borrowers who lost their home between January 1, 2008 and December 31, 2011 due to a wrongful foreclosure.
– $60 Million will be a direct payment to the state
– The remaining 1.3 Billion will go towards helping homeowners enter into long term modifications and also to provide other direct relief options to Nevada homeowners.
Neither of the settlements listed above hinder either Nevada or homeowners from pursuing criminal or civil cases against any of the five servicers listed above.
Should you have any questions or need further information,
please don’t hesitate to contact me, (775) 220-1630
Or visit my website: www.SellingHomesinReno.com
NAR designated: Short Sale & Foreclosure Resource
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521
Legal disclaimer: I am not an attorney, tax professional, modification specialist or credit counselor. The information contained in this article/blog is intended to provide general information on the subject and not to provide any legal, tax, or credit advice. You should not act upon this or any information without first seeking independent tax and/or legal counsel.
Source of Information: DSNews.com