Mortgage Settlement Distributions in Illinois
Last year, the government reached a $25 billion settlement with five large mortgage lenders. During the last year, Illinois homeowners have slowly been receiving the fruits of that settlement. Over a year later, almost $1.8 billion has been distributed to over 25,000 Illinois residents. Initial estimates were that Illinois residents would receive between $1 billion and $1.5 billion, but it turns out we were owed more.
How have these benefits played out? Well, over 5,000 homeowners were able to complete short sales with their lender’s permission. More than 8,000 homeowners had their secondary liens canceled entirely, leaving them with only their first mortgage. Over 3,500 homeowners received permanent loan modifications with large reductions in the principal owed, averaging over $118,000.
The government is still monitoring banks for compliance.