The latest news that could affect underwater homeowners is that the Government reached a settlement with major lender in the tune of 25 billon dollars.

The news is spreading across the internet about this major agreement. .

A lot of criticism and a lot attention is being paid from a political point of view. .

But, what about you?

How does these news affect you if your home in underwater?. Or

If your home is being considered for a Loan Modification. .or

If your home is listed as a short sale right now. . or

If your home was recently foreclosed


What does it mean?

This post is for you, if you want answers and want the bottom line


How much money is available?

25 billion dollars being paid by Bank of America, JPMorgan Chase, Wells Fargo, Citigroup, and Ally Financial


short sales expert Maryland Why?


Because they got caught falsifying records and signatures form unsuspected homeowners



short sales expert Maryland

"Take me to your leader"

Robo-Signing. . remember?




The lenders promised not to do it again. .

Who qualifies to get some of this money?

Any homeowner that has incurred a foreclosure in the last 3 years will get a check for $2,000. . and an autographed copy of their own robo-signature (unframed)

Any homeowner that has a mortgage underwater and is CURRENT ON THEIR MORTGAGE PAYMENTS may qualify for a principal reduction. No details yet on this, but we suspect that they will start with loans that are under

Please read it again. . .you have to be CURRENT ON THEIR MORTGAGE PAYMENTS

Of course regular loan modifications are still being entertained by these same lenders using other established programs provided that the homeowners qualifies and are agreeable into signing buying their home once again at a much higher price than is worth.

short sales expert Maryland

Who does not qualify?

If your loan is held by Fannie Mae and Freddie Mac, which by the way own half of all U.S. mortgages.. . you do not qualify.

How do I find out if my loan is Freddie or Mac?

These mortgages do not qualify under the terms of the settlement. You can find out if your loan is with either of these lenders by looking up your loan at or


What is my first step if I feel this could help me now?

Just reach out to your bank to find out if you may be eligible. The only banks that are participants of this settlement are below with their phone numbers. . if your lender is not listed there. .you do not qualify. If your home was foreclosed by any of these banks during 2008 and 2011, call them to claim your $2000.00

? Ally/GMAC:           800-766-4622

? Bank of America:    877-488-7814

? Citigroup:              866-272-4749

? JPMorgan Chase:   866-372-6901

? Wells Fargo:           800-288-3212


I need help now!. .how soon can I expect this help?

You'll need to be patient. The Government and the banks agreed to have up to three years to distribute these funds. If you are current on your mortgage payments and need immediate relief. .perhaps this may not be an option for you.

It has been reported that over the next one to two months, administrators will be picked to handle the distribution of the settlement, and they will have six to nine months to determine which borrowers will get help. . so the waiting game continues


Do I qualify for a principal reduction?

If your loan is both owned and serviced by any of these banks, I'll say you may have a small shot. We are not sure yet how they are going to determine who qualifies for a principal reduction yet? The ideal situation would be in my opinion that you have a mortgage underwater, serviced and owned by one of these banks, you are having problems paying your mortgage and started using your credit cards to buy groceries. You have depleted most of your savings and are living paycheck to paycheck now.

Now, if you already up to the limits of your credit cards all your savings are gone and you have to choose to eat or pay your mortgage next month. . you can't wait for this program. . you'll need to act now.

Nevertheless it is an undaunted task by these lenders. .and a puzzling decision by the government that allows this:

That people who NEED HELP are homeowners that are behind on their mortgage payments. .not the ones that are current!

The people that NEED HELP are homeowners that have seen an increase on their mortgage payments (ARMS) and a decrease in their total salary and they can no longer pay a full mortgage payment anymore.

The obvious problem here is that if they reduced the principal to your neighbor's mortgage and you share the same servicers and owners of your loan. . then you should be able to also qualify. .and your neighbors next door. .and the neighbor next door and . . ..the next . .and the next. .and the next. .. . around the world? . . you get my point.


What if my house is already listed as a short sale, and I'm in the middle of negotiations with my lender right now?

If you already missed one mortgage payment, you do not qualify for this Government Mortgage Settlement and my advice is to continue on with your plans.

If you have NOT missed your mortgage payments and you are seeking for a short sale relief. .you may consider calling your lender to the numbers listed above and ask them specifically. .do you qualify?

Be prepared to wait some time for this.


Don't be a victim of bad information! 

There is currently a lot of bad and misleading information out there regarding short sales in Maryland DC and Virginia and you need to arm yourself with the facts before you take the next step you need to take.

The Worst Thing You Can Do Is Wait !

Take Action Today!

Get the facts from a distressed property expert that has the ability to help you avoid a foreclosure by doing a Short Sale today!

Is  A Short Sale an Option For Me? 

short sales expert Maryland

short sales expert Maryland

short sales expert Maryland




Fernando Herboso

Broker for Herboso & Associates