Tennessee homeowners have received over $170 million in relief under the National Mortgage Settlement, according to a progress report released this week by settlement monitor Joe Smith.
Tennessee is participating in the historic $25 billion National Mortgage Settlement with the nation's five largest mortgage servicers that was announced in Feb. 2012. This settlement arose from an investigation into unacceptable nationwide mortgage servicing and foreclosure practices. The servicers participating in the National Mortgage Settlement announced in February are Bank of America, J.P. Morgan Chase, Citi, GMAC/Ally Financial, and Wells Fargo.
After compiling data received from these five mortgage servicers, the report shows that Tennessee homeowners are continuing to receive substantial benefits under the settlement, more than one year after it was first announced. Eligible Tennessee homeowners have reportedly received $173 million in relief from March 1, 2012 through March 31, 2013. This relief includes loan modifications, refinances, short sales, and deficiency waivers.
The monitor's report also shows that servicers are offering an additional $49 million in loan modification savings to eligible Tennessee homeowners.
"This progress report shows that the national mortgage settlement is still helping eligible Tennessee homeowners stay in their homes with an affordable mortgage," said Tennessee Attorney General Bob Cooper. "We hope other struggling Tennesseans will take advantage of the relief still available under the settlement or from other state and federal programs." Homeowners who are having trouble paying their mortgage can call the state's free mortgage assistance hotline at (855) 876-7283 (Monday – Friday, 7 a.m. – 6 p.m. CT) and speak to a representative who can direct homeowners to a free foreclosure prevention counselor and explain various housing assistance programs. The state's hotline is available to all struggling Tennessee homeowners, regardless of who services their loan.
Although the settlement does not guarantee all homeowners will receive assistance, Tennessee homeowners who have been as far as $60,000 behind on their mortgage have qualified for modifications which have helped them avoid foreclosure. The Tennessee Attorney General's Office urges all struggling homeowners to contact the mortgage assistance hotline immediately.
In addition, homeowners who are having trouble with the five servicers covered by the settlement can report problems to the Office of Mortgage Settlement Oversight by visiting www.mortgageoversight.com.
For more information about free foreclosure prevention counselors or mortgage assistance programs in Tennessee, homeowners may visit www.tn.gov/attorneygeneral or www.KeepMyTNHome.org. For more information about the settlement, please visit www.nationalmortgagesettlement.com.