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In February, the Obama Administration joined a bipartisan coalition of 49 state attorneys general to strike a $25 billion settlement with the nation’s five largest mortgage servicers. The settlement was a historic step forward to help struggling homeowners and hold banks accountable – and already, families are starting to see results.
As CNNMoney reported this morning, one of those families is the Vallejos, a Sacramento, CA family in foreclosure whose home was scheduled to be auctioned off the day help arrived. Thanks to the settlement, the Vallejos’ bank reduced their mortgage balance by $85,000 and their interest rate by 2 percent, saving them nearly $7,000 per year. As Tamera Hewlett-Vallejo said, “we literally went to church on Sunday praying for help.” And before the ink was even dry on the settlement, their prayers were answered.
While the Vallejos were among the first of the estimated 1.75 million families who will receive direct help from this settlement—from principal writedowns, to refinancing for underwater homeowners, to direct payments for families harmed by bank misconduct—they won’t be the last.
Homeowners with questions on whether they may be eligible for help should contact their mortgage servicer or go to www.nationalmortgagesettlement.com
Read the Vallejos’ story on Money.CNN.com