Madigan: Illinois in top 5 states for relief to homeowners from National Foreclosure Settlement
CHICAGO, IL — In responding to the second report issued by the national foreclosure settlement’s independent monitor, Attorney General Lisa Madigan today outlined the direct relief Illinois borrowers have received as a result of the $25 billion settlement reached earlier this year with the nation’s five largest bank mortgage servicers over allegations of widespread “robo-signing†and other fraudulent practices involved in servicing loans of struggling homeowners.
The independent monitor was appointed to oversee compliance with the terms of the settlement reached with Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Bank, formerly GMAC. The monitor’s report covers compliance activities from March 1 to Sept. 30, 2012, and details how much relief Illinois borrowers have received under the settlement.Â
In the first six months of the settlement’s implementation, 11,273 Illinois consumers have already received more than $779 million in relief, which equates to an average of $69,168 in direct assistance per borrower, in principal reductions, refinancing for underwater loans and other relief. In an analysis of the monitor’s report, the Attorney General’s office determined that Illinois ranks among the top 5 states for the amount of relief directed to homeowners.
“More than six months into the implementation of the settlement, the banks’ progress in providing the required relief couldn’t come soon enough for struggling homeowners. We continue to be inundated with requests for assistance from Illinois homeowners,†Attorney General Madigan said.
Additional Sources of Assistance for Illinois Homeowners
In addition to the direct relief for Illinois borrowers, the Attorney General’s office has recovered money from the banks to counteract the effects of historic levels of foreclosures on homeowners and communities, including funding for legal aid services, housing counseling, outreach to borrowers, housing policy development and community revitalization. Madigan urged distressed Illinois homeowners to call their regional legal aid office to learn more about the services and resources offered in their area:
