Some Michigan homeowners will receive a cash payment because of the National Mortgage Settlement (NMS), while others will receive lower interest rates or loan modifications.
But all should be on the lookout for settlement scams.
Michigan was one of 49 states that entered into settlements with the five top mortgage servicer banks: Bank of America (BOA), Citibank, JPMorgan Chase, General Motors Acceptance Corporation (GMAC)/Ally and Wells Fargo.
As agreed, these banks will use at minimum $25 billion for consumer relief aid. Consumers can expect agreements for deeds in lieu of foreclosure, interest rate and/or principal balance reductions and short sales.
Are you an eligible homeowner? Here are some safety pointers:
- Claims notices started going out by mail in September 2012.
- You will be contacted by your loan-servicing company.
- Do not provide personal or financial information to anyone who contacts you by phone or email. Your lender should already have your account number and pertinent information.
- Do not communicate with anyone who wants to charge a fee – the relief is free.
- If you have the slightest concern, request contact information, then call your bank’s hotline:
- Bank of America: (877) 488-7814
- Citibank: (866) 272-4749
- Chase: (866) 371-6901
- GMAC/Ally: (800) 766-4622
- Wells Fargo: (800) 288-3212
- Contact an experienced Michigan commercial lawyer for a free consultation about your legal rights.
Michigan residents who believe they are being scammed should go to http://www.michigan.gov/ag and file a complaint by clicking "Complaints" and follow the on-screen instructions.
For more information about this topic, review http://www.nationalmortgagesettlement.com.