National Mortgage Foreclosure Settlement will give MO almost $200 million
Fri, 10 Feb 2012 13:40:53 GMT —
Missouri will receive almost $200 million under Thursdayâ??s national mortgage foreclosure settlement.
Attorney General Chris Koster said his office will embark on a statewide education campaign to alert home loan customers about the benefits they can receive.
The white house Thursday announced the nation's five largest mortgage companies will return about $25 billion to loan holders nationwide. Just less than $197 million comes to Missouri.
"Roughly $155 million in total benefits will go directly to Missouri home owners, and those who have been foreclosed on," MO Attorney General Chris Koster said.
People who are upside down on their mortgages, that is, they owe more than their homes are worth, get most of the benefits. $38 million will help those who are current on their payments to refinance.
More than $86 million will help people who are behind reduce their principal amounts, to make payments affordable. $31 million will go to direct cash payments, at $2,000 each, to people who were foreclosed between 2008 and 2011, as a result of foreclosure document robo-signing and other illegitimate practices.
Koster said there will be seminars in the coming months conducted at courthouses around the state.
There is also a toll-free hotline you can call for information. The mortgage information hotline is (855) 870-7676.
Their also could be more money down the road.
"Today's (Thursdayâ??s) announcement allows to go forward to stage two, which is to begin negotiations with the present framework with those lending institutions that are ranked six through fifteen, I would say. Our hope is that this road map provides a quick settlement with these subsequent loan-servicing companies,â?? Koster said.
Missouri state government will get $40 million from the settlement.
Earlier this week, Governor Jay Nixon proposed using those funds to soften a budget cut for colleges and universities
Koster said the state has three years to process claims against the settlement before Missouriâ??s leftover money diverted to states harder hit by the foreclosure scandal.