Bank deal may mean relief for Contra Costa homeowners

Or does it?  Will Walnut Creek and Contra Costa homeowners benefit from this new 26 BILLION dollar settlement with the big banks? Maybe.  One thing we know right now is that the details aren’t totally forthcoming and we’ll need more information.

What is known is that there may be some relief for those who hold “underwater mortgages,” or you may be eligible for a one time $2,000 payment if you were foreclosed upon by one of the big banks involved in the settlement.

Here’s some of what we know right now:

Participating banks: JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and Ally Financial (formerly known as GMAC Mortgage).

Foreclosure relief: For some who suffered a foreclosure between January 1st 2008 and December 31, 2011 (and who meet other requirements) you may be eligible to receive up to $2,000.

Principal Reduction: Some of this settlement will go toward up to 1 million homeowners who are both underwater on their mortgages AND behind in their mortgage payments. This part of the agreement may mean principal reductions, however there are some factors that may prevent many from seeing relief in this part (of course).

Refinancing: Up to 3/4 of a million homeowners who are underwater and current on their payments may be able to apply for relief through a refinance to our record low interest rates.  These homeowners could realize some good savings on their monthly payments.

Here are some resources that may help:

CNN Mortgage settlement could bring billions in relief

Wall Street Journal discusses the foreclosure settlement:

Local Bay Area CBS Channel 5 discusses the mortgage settlement on Sunday, 2/12/12: