Few Homeowners See Benefit From National Mortgage Settlement, Three Months Later

Few Homeowners See Benefit From National Mortgage Settlement, Three Months Later

If 76-year-old Gloria Schrager lives to be 100, she will get the worst birthday present ever: a bill from JPMorgan Chase for $199,052.

Schrager was behind on her mortgage payments and in danger of losing her Orlando home to foreclosure when she accepted a modification plan from Chase that made her monthly payments much more affordable. But the Peruvian immigrant feels like the house she has lived in since 1985 isn’t really hers anymore. Rather than forgiving a portion of her debt as she requested, Chase modified her loan so that most of her principal would be due in one gigantic balloon payment at the end of the loan’s term.

“It is a painful thing at the very end to have balloon payment,” said Schrager, who lives on her Social Security checks and by working part time for $9 an hour at a medical clinic for children with autism and Down syndrome. “It’s like I am paying rent on this house, but if something breaks, I cannot call the landlord. I am so scared that I am going to get sick and not be able to keep up” with the payments.

As part of the national mortgage settlement signed in March, five large banks — Chase, Bank of America, Citigroup, Wells Fargo and Ally Financial — agreed to offer at least $10 billion in loan forgiveness, or principal reduction, to some of the estimated 11.1 million homeowners who owe more on their mortgage than their home is worth.

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7 Responses to “Few Homeowners See Benefit From National Mortgage Settlement, Three Months Later”
  1. Judith McDonald says:

    Pres.Obama could get himself re elected by doing Major principle reduction by Fannie Mae and tell Mr. DeMarco that President of the United States trumps Director of the “Enterprise” so weird that’s Fannie Mae & Freddie Mac.
    He gave to the Banks,he could give to Americans.

    I’m not interested go to my photo album at judesworld.mcdonald3@Gmail.com Bank of America on 7/10/11 assigned by house to Fannie Mae, they used my name along with MERS Inc.so they need to fix this with the Recorder of Deeds in Wilmington Delaware.I have lived in Hell on Earth and being seriously ill I don’t have time for Bank of America long inaccurate letters from the Office of the President .

  2. Nothing has changed! Modification? set too go up so even if you are paying it religiously, doesn;t matter, you will lose! Mortgage Companys refuse to take out of default! foreclosed on! Bankers Asset Managtement supose to be playing fair with homeowners? Has anyone even seen the notice! $7500 to $10000 good luck with that! 1st and last, deposit, pet deposit, credit check? oops you lose! mustput in childrens name? another credit check fee? reminder it is only good for 30 days! then you get too pay the movers?? so 1075 x2 plus deposit 1000 plus pet 500 plus pet 15-35 month? you really want too keep the pet?? how are we doing with the numbers? we haven;t even rated the movers yet! do they really think that everyone just has family or whoever to come and help move for free? 34 days after foreclosure? shit happens~ not ready ! oops! need another week! No can do!!! oops, you bllindly signed once again another document that protects them and not you!!! When will we ever learn! there is absolutely nothing in a contract or any good givings coming from a bank! Once again they win and you lose and NO ONE GIVES A SH SO SHUT UP and move on? my goodness too much stress for one person!

    • Judith McDonald says:

      Ruth Ann hang it there,many of us know exactly how you feel.Get it out sister.Peace and Good Luck.

  3. Steve Jones says:

    This is obvious, since the “settlement” was basically a “bailout” for the Banks. In other words, they’ve committed fraud nationwide and have settled that they won’t be investigated, prosecuted or punished for breaking the law continuously.

  4. John says:


  5. Pamela Edwards says:

    Modification is not the answer never has been and isn’t going to be.Those ballon payments are too expensive to make and the banks know this thats why they agree to some modifications.They know eventually you are going to be foreclosed on because if you could’nt make your whole payment before your not going to make it when the ballon payment is due.It also gives the banks a chance to legal up your paperwork.People need to get the idea that this just one more scam to add to the growing list.The bankers will always try to collect legal or illeagly because they are exempt.Our government has made this possible for them.

    • tee says:

      Same thing One West Indy Crap Bank did to me. The Fed is involved Pamela and possibly the main schemer / scammer …..our on gov, our representation elected by the people for the people. Obama says quote…What the banks did wasnt illeagal, It was just immoral unquote..haha COVER-UP! Romney ? noooooo were screwed to put it mildly. Obama, if you read this, why dont you get the sac to clean up congress….its the only way your programs will ever fly.
      I say, take your money out of big banks, stop paying your mortgage and use a portion to pay a investigation lawyer to seek out every aspect of the mortgage….and save because if u dont save they will boot u to the streets and laugh at you. They will get your home…..even if it on the last payment when the balloon is due.They wont back down, they wont be fair,they lie cheat deceive……declare war on these subprime big banks…they have declared it on us.

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