I'm back from an invigorating week in San Antonio meeting and gathering with almost 700 consumer bankruptcy attorneys from all over the country at the latest National Association of Consumer Bankruptcy Attorneys Convention. As promised in my last post, I would try and get the "scoop" on the latest AG Settlement. Despite the fact that it was a Saturday late afternoon and there was the City's best parade right outside the hotel room, the session room was packed! Everyone wanted to hear from Joseph Smith, Jr. what the settlement can really do.
Thanks to Norma Hammes, Esq. she broke down the massive settlement documents into a manageable summary. There's lots there but here's what stood out the most to me:
1) There is no absolute right or entitlement for the consumer under this settlement for a modification or principal write-down.
2) The Servicers receive "credits" instead of paying actual money in providing "consumer relief"
3) California negotiated extra relief mechanisms for its residents
4) Borrower's whose homes have been previously foreclosed during period of January 2008-December 2011 may be entitled to a case payment of $1500 to $2000, and enforced by the State Attorney General's Office
5) At the moment, there is no current portal or formal mechanism for consumers to apply to this program, but it is in the works and hope to get one up soon
6) Fannie a Freddie Mac mortgages do not apply to this settlement
7) There are special protections for debtors in an active bankruptcy to continue to participate in this settlement
8) The website for more information is www.mortgageoversight.com
9) There was not enough time allocated to this session! We could have spent another 3 hours on this topic.
Part 2- coming soon on what I learned about Student Loans