|
PNC Bank on Dual Highway in Hagerstown. (File photo / January 12, 2013) |
Nancy Shulley received a letter about a year ago that she thought might be junk mail, but, just in case, she put it in a desk drawer and eventually sent a reply.
Good thing she did.
Now, the Hagerstown woman’s letter might be the ticket to her receiving as much as $125,000 — a windfall after years of nightmarish wrangling with her bank, followed by foreclosure and personal bankruptcy.
Federal regulators announced an $8.5 billion settlement with 10 major U.S. lenders this past week in an attempt to resolve alleged sloppiness and wrongdoing in their handling of the mortgages of millions of Americans in recent years.
Under the settlement, $3.3 billion will go directly to borrowers who were in some stage of foreclosure proceedings on their principal residence in 2009 and/or 2010.
The payments could range from hundreds of dollars to any borrower to as much as $125,000 apiece.
In the Tri-State area, varying amounts of this money could go to more than 8,000 families, according to data released by federal regulators.
In Washington County alone, the data suggests, the money could go to as many as 1,752 borrowers.
But a federal source cautioned that the data is very imprecise.
In Washington County, the money won’t go to more than that number of borrowers, but it could go to fewer, said the source, who refused to comment unless neither he nor his agency were identified publicly.
Nonetheless, there is much skepticism among those who work with troubled local borrowers about the extent to which this new settlement will truly help those families.
“Would a couple thousand dollars, would a couple hundred help these people?” asked bankruptcy attorney Terri Lowery, who is based in Cumberland, Md., and has an office in Hagerstown.
“Sure,” the money would help such families with short-term needs, Lowery said.
“Would it catch them up on their mortgage? Would it get their house back? Well, no,” Lowery said.
But the settlement also provides $5.2 billion in other assistance for borrowers. This could include loan modifications and forgiveness of deficiency judgments, according to a statement from the Board of Governors of the Federal Reserve System.
Given the way many lenders have treated borrowers in recent years, Lowery and others are doubtful.
“I’m still battling with mortgage companies for people trying to get loan modifications three and four years later,” said Barb Spielman, senior housing adviser for the Hagerstown Home Store.
The independent, nonprofit organization counsels families facing foreclosure, as well as helps first-time home buyers.
And as far as using the settlement to pay each family who qualifies, but already has lost their house, “how do you find them?” asked Hagerstown attorney Alex Bognar, who specializes in bankruptcy cases.
Good thing she did.
Now, the Hagerstown woman’s letter might be the ticket to her receiving as much as $125,000 — a windfall after years of nightmarish wrangling with her bank, followed by foreclosure and personal bankruptcy.
Federal regulators announced an $8.5 billion settlement with 10 major U.S. lenders this past week in an attempt to resolve alleged sloppiness and wrongdoing in their handling of the mortgages of millions of Americans in recent years.
Under the settlement, $3.3 billion will go directly to borrowers who were in some stage of foreclosure proceedings on their principal residence in 2009 and/or 2010.
The payments could range from hundreds of dollars to any borrower to as much as $125,000 apiece.
In the Tri-State area, varying amounts of this money could go to more than 8,000 families, according to data released by federal regulators.
In Washington County alone, the data suggests, the money could go to as many as 1,752 borrowers.
But a federal source cautioned that the data is very imprecise.
In Washington County, the money won’t go to more than that number of borrowers, but it could go to fewer, said the source, who refused to comment unless neither he nor his agency were identified publicly.
Nonetheless, there is much skepticism among those who work with troubled local borrowers about the extent to which this new settlement will truly help those families.
“Would a couple thousand dollars, would a couple hundred help these people?” asked bankruptcy attorney Terri Lowery, who is based in Cumberland, Md., and has an office in Hagerstown.
“Sure,” the money would help such families with short-term needs, Lowery said.
“Would it catch them up on their mortgage? Would it get their house back? Well, no,” Lowery said.
But the settlement also provides $5.2 billion in other assistance for borrowers. This could include loan modifications and forgiveness of deficiency judgments, according to a statement from the Board of Governors of the Federal Reserve System.
Given the way many lenders have treated borrowers in recent years, Lowery and others are doubtful.
“I’m still battling with mortgage companies for people trying to get loan modifications three and four years later,” said Barb Spielman, senior housing adviser for the Hagerstown Home Store.
The independent, nonprofit organization counsels families facing foreclosure, as well as helps first-time home buyers.
And as far as using the settlement to pay each family who qualifies, but already has lost their house, “how do you find them?” asked Hagerstown attorney Alex Bognar, who specializes in bankruptcy cases.
