Funds Available To Victims Of Foreclosure - | Nashville News, Weather & Sports

Funds Available To Victims Of Foreclosure

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NASHVILLE, Tenn.- Notices have been handed out to over 37,000 Tennesseans who may be for money after a $25-billion national mortgage foreclosure settlement.

Tennessee will receive more than a $100 million in settlement cash to help homeowners who went into foreclosure, and dealt with banks who sometimes had questionable business practices. Residents who dealt with Ally/GMAC, Bank of America, Citi, JP Morgan Chase and Wells Fargo have been urged to contact the Attorney General's office.

"Some of these people have received extra late fees tacked on to their loans or had other sorts of servicing abuses, their paperwork was lost," said Jennifer Peacock, with the Attorney General's office.

The Attorney General's office has sent out notices to residents who lost their homes to foreclosure between Jan. 2008 and Dec. 31 of 2011. These people also dealt with five of the nation's largest mortgage service providers. Those who received the notices have to reply by January 18, 2013.

The settlement will also go to help residents dealing with a long term medical hardship and on the path to foreclosure. With $25 million available the Tennessee Housing Development Authority may be able to help.

"We can provide them up to 40 thousand dollars for up to 36 months -so that maybe that gives them time for a graceful exit," said Bill Clendening, with the Tennessee Housing Development Authority.

These settlement dollars have been around since this summer, but the state is still working to get out the word. It's proved to be a challenging task.

"The problem since these people were foreclosed on was a lot of these people have moved since they lost their homes and we may not have their current addresses," said Peacock.

THDA also is working on a $10 million state wide program that will help people avoid foreclosure in the first place.

"They don't have to be in trouble to get this help - they don't have to be behind. I always say be proactive - if you know you are going to have trouble making your mortgage payments and you have lost your job or 30 percent of your income or more - then talk to us,' said Clendening.

Ten million dollars will also be spent on foreclosure prevention counseling throughout the state. A big event is set for October 24th.

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