Tennessee homeowners have received over $161 million in relief under the National Mortgage Settlement, according to a progress report released today by settlement monitor Joe Smith.
Tennessee is participating in the $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 have now received nearly twice as much relief as they had just three months earlier. Eligible Tennessee homeowners have reportedly received over $161 million in relief from March 1, 2012 through Dec. 31, 2012. This relief includes loan modifications, refinances, short sales, and deficiency waivers.
The monitor's report also shows that servicers are offering an additional $34 million in loan modification savings to eligible Tennessee homeowners. It is expected that the National Mortgage Settlement will ultimately provide over $200 million in direct benefits to Tennessee homeowners, with the majority of benefits designed to allow homeowners to avoid foreclosure.
"This progress report shows the substantial relief eligible Tennessee homeowners have obtained since the settlement was announced one year ago," said Tennessee Attorney General Bob Cooper. "My office is continuing its outreach efforts to ensure that struggling Tennessee homeowners either receive benefits 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.
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.