Koster: New Hope For Underwater Or Foreclosed Upon Homeowners
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JEFFERSON CITY, Mo. (KMOX) – Missouri has received more than $83 million this year as part of the National Mortgage Settlement and Attorney General Chris Koster says that money’s available for homeowners who are under water, or owe more on their home than it is worth.
Five banks were involved in the suit over allegations of foreclosure abuse, unfair mortgage servicing and fraud: Bank of America, Citigroup, JP Morgan, Ally Financial and Wells Fargo.
“If a customer of one of these five banks owes more on their home than their house is worth, then under the settlement we are encouraging them to go to the bank and the bank is willing to readjust the principle on that loan,” A.G. Koster explained. “That will bring it back in line and reduce their payments.”
Koster added that the banks involved aren’t obligated to renegotiate home loans, but each lending institution has set aside pools of money to help people who are underwater or have been foreclosed upon.
Go to Koster’s website (www.ago.mo.gov) or call his office for more information.
The five banks in question hold about 65% of mortgages in Missouri.