11,000 Iowans to get Mortgage Settlement Letters

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September 25th, 2012 by admin

DES MOINES, Iowa (AP) – More than 11,000 Iowans who lost a home to foreclosure from 2008 through 2011 are getting letters in the mail indicating they may be eligible for money from a settlement with banks.

Attorney General Tom Miller says those eligible borrowed money for mortgages serviced by Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo. They agreed to a $25 billion national mortgage foreclosure settlement with the federal government and state attorneys general.

The settlement, which took effect in April, earmarked about $1.5 billion in payments for two million borrowers nationwide who lost their homes to foreclosure during that period and had their loan serviced by one of the settling servicers.

Miller says the exact payment will depend upon the total number of borrowers who decide to participate.