States, Banks Reach Foreclosure-Abuse Settlement: Who Benefits?

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Mortgage lenders reached a $25 billion settlement with 49 states Thursday over foreclosure abuses.

The question many people are now asking: who gets money from that massive settlement?

An estimated 2 million people are expected to receive help from the settlement, although it could take six to nine months to be notified. All eligible people will receive notification through the mail.

People who got their loans through Bank of America, Citi Bank, JPMorgan Chase, Wells Fargo and Ally will be eligible to have the amount of their loan reduced, or receive help with financing. Those who got a government loan through Fannie Mae and Freddie Mac do not qualify.

Even after receiving notice of eligibility, it still could be awhile before seeing any money--lenders have three years to fulfill the terms of the deal

Oklahoma was the loan holdout in the settlement, and will not receive any money.

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