Illinois receives more than $2 billion in relief from national foreclosure settlement

August 22, 2013

Online Staff Report

CHICAGO — Illinois Attorney General Madigan (D) reported Aug. 22 that Illinois homeowners and assistance organizations have received more than $2 billion in total relief under the national foreclosure settlement, according to results in the latest progress report by the settlement’s independent monitor.

As of June 2013, Madigan said, 26,251 Illinois consumers have received approximately $1.88 billion in direct relief under the settlement, with an average of $71,600 in direct assistance per borrower, through principal reductions and refinancing for underwater loans. Significantly, of those receiving assistance in Illinois, more than 3,600 homeowners received first-lien principal reductions averaging $116,557.

In addition to the direct relief to borrowers who are underwater or behind on their loans, nearly 30,000 Illinois borrowers whose mortgages were serviced by the settlement’s five banks but later lost their homes to foreclosure will receive $43.3 million in relief payments under the settlement. Finally, Madigan said, approximately $95 million in settlement funding has been distributed to organizations in Illinois committed to foreclosure prevention and community revitalization.

The national foreclosure settlement has brought many forms of assistance to Illinois homeowners who continue to struggle in the wake of the foreclosure crisis,” Madigan said. “Whether through loan refinancing for borrowers, assistance for those who lost their homes or funding for organizations seeking to renovate vacant properties, we are working on many fronts to restore communities devastated by this crisis.”

The funding stems from the $25 billion national settlement announced last year by Madigan, 48 states and the U.S. Department of Justice with the nation’s five largest bank mortgage servicers — Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Bank, formerly GMAC — to address allegations of widespread “robo-signing” of foreclosure documents and other fraudulent practices banks employed while servicing loans of struggling homeowners.

For homeowners with more questions about the national settlement, they should contact Madigan’s Homeowner’s Helpline at 866-544-7151, or visit her website, www.illinoisattorneygeneral.gov/consumers/bankforeclosuresettlement.html. Borrowers also can visit www.NationalForeclosureSettlement.com.

Posted Aug. 22, 2013

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