1. 60% of $17 billion for principal balance reductions for borrowers in default or at risk of default of loan payments;
2. $5.2 billion for other homeowner assistance such as short sale approvals, unemployment forebearance, deficiency balance waivers, relocation assistance, and payments to fix blighted properties;
3. $3 billion Refinancing Underwater Homes for those not late on mortgage payments
4. New standards requiring bank servicers to adhere to tougher foreclosure and loss mitigation processes and documentation (including an appeal process), hopefully stopping foreclosure while borrowers are actively seeking loan modification;
5. $1.5 billion to foreclosure victims who were wrongfully foreclosed upon, approximately $2,000 per borrower
6. $2.5 billion to participating states for additioal housing relief programs, foreclosure relief, and alternatives as distributed by the attorneys general.
Pretty amazing right? But now what? If you're like me you are asking questions like "Do I qualify?" "How do I apply for relief?" "What relief is available to me?" and so on. I am excited to attend this year's upcoming National Association of Consumer Bankruptcy Attorneys annual convention in San Antonio next month where a special panel with Joseph A. Smith Jr. - the former North Carolina banking commissioner who has been named to oversee the independent monitoring and enforecement under the agreement, pending approval of the settlement by the U.S. District Court for Washington, D.C., will be held and yours truly and hundreds of other bankruptcy lawyers can ask more questions and get the answers you want. Stay tuned!