What the Mortgage Settlement Means to You
- Homeowners who need loan modifications to stay in their homes. Loan servicers have agreed to write off some principal in these cases, which would help homeowners refinance at lower monthly payments.
- Borrowers who are current on payments but underwater, meaning they owe more than their home is worth. Servicers will help some of these owners refinance at current rates, which are at or near record lows.
- Borrowers who have lost their homes to foreclosure. Some of these former owners will be eligible for payments. $1.5 billion will be distributed to 750,000 borrowers, which works out to $2,000 per person.
- Joanne Loftus