The Federal government has just reached a $25 billion settlement with 5 large banks over the handling of foreclosures during the housing boom and subsequent bust.
The settlement covers borrowers who have loans with Ally/GMAC, Bank of America, Citi, JP Morgan, and Wells Fargo. If your loan is with anyone else, today’s settlement has no direct effect on you. For ‘qualified’ borrowers, the settlement may allow you to reduce your principal, lower your interest rate, or provide you with a cash settlement from your lender. It will take some time to sort through the logistics, but for now here is more general information about the settlement.
