National Mortgage Settlement Helps Those Affected by Foreclosures

Thousands of Tennesseans may be eligible for part of the National Mortgage Settlement

Tennessee is one of the 49 states that was part of the settlement, and approximately 24 million dollars was set aside for Tennesseans who lost their home due to foreclosure.  Notices went in the mail this week to those people who be eligible to make a claim.  It is estimated that 37,000 people in Tennessee will receive a claim form in the mail this week.

In order to qualify for compensation, you must meet the following criteria:

  1. Lost Your Home Due to Foreclosure between January 1, 2008 and December 31, 2011
  2. Your Home was Foreclosed by Bank of America, Citi, Ally/GMAC, JP Morgan Chase or Wells Fargo
  3. You must submit a claim form by January 18, 2013
    It is important to note, the settlement does not require that you have a current financial hardship.  The settlement also does not waive any of your future legal claims against the mortgage companies and you may seek additional relief in the courts.

    You should be wary of any potential scams involving this settlement.  The claim process is free and there is not a way to expedite the approval or payment of the claim.  If you are contacted by an organization which charges a fee or states they can speed up the claim process, please report them to the proper authorities.

    You may also file your claim online, at a site set up by the Attorney Generals to administer the mortgage settlement.  The address is:

    If every eligible person files a claim, the payout is expected to be $840.  Many expect the actual payment to be between $1,500 and $2,000 as many will not participate.

    Loans that were owned by Fannie Mae or Freddie Mac were not involved in this settlement.   However, they may have other programs for you to use for help.

    You can contact the National Mortgage Settlement Administrator at 1-866-430-8358.

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