Settlement Seeks to Give Relief to Homeowners

Sonoma County homeowners facing foreclosure or who suffered mortgage-related abuses are set to receive an estimated $267 million following an agreement reached Thursday between California Attorney General Kamala Harris and five national banks, the Press Democrat is reporting.

The settlement will require Wells Fargo, Bank of America, JPMorgan Chase, Citigroup and Ally Financial to reduce the amount borrowers owe on their mortgages, lower their interest rates and pay restitution to homeowners who suffered mortgage-related abuses.

It will also force lenders to change how they deal with homeowners who are still trying to pay their mortgages as well as bar banks from foreclosing on borrowers while negotiating mortgage modifications.

The settlement is part of an $18 billion payout for California and is estimated to help some 250,000 homeowners, just 12 percent of more than 2 million borrowers now “under water.”

Click here to read the full article.