$26 billion settlement to help, not save, NC

GREENVILLE, N.C. - The home mortgage crisis has left millions of people clinging to the American Dream while their mortgages went underwater or worse, they went into foreclosure.

Some of those people right here in the east.

Today, a massive $26 billion settlement between attorneys generals and big banks could bring relief.

At least $17 billion will be used to reduce principal for borrowers who owe far more than their homes are worth and are behind on payments.

"We have reached a landmark settlement with the nation's largest bank," said President Obama.

North Carolina will receive $338 million divided into four different levels of assistance.

49 States attorneys generals, including North Carolinas Roy Cooper and President Obama championed their landmark mortgage settlement to media Thursday.

Sticking it, they say, to big banks that were key players in the mortgage crisis.

"Strong, court ordered enforcement with teeth distinguishes this deal from earlier efforts to help homeowners," said Cooper.

Bank of America, Wells Fargo, JP Morgan Chase, Citigroup, and Ally Financial are the five included in the settlement, all of which handle more than half of all outstanding mortgages.

North Carolina will receive $338 million from the settlement to provide housing councilors and legal help.

Most of the money, more than $179 million, will go toward principle reduction for people underwater or behind on mortgage payments.

Refinancing will be available to people who are still current on their payments but also underwater; a much smaller portion, up to $2,000, going to people who foreclosed from 2008 to 2011.

"The hope would be, all of a sudden, I don't have a mortgage anymore and I can stay in my house and own it full and outright, that's not the case at all," said Jim Kleckley, Director of the ECU Bureau of Business Research.

Kleckley says the settlement will help North Carolinians hold on to their mortgages, but certainly won't solve all their problems.

"I believe the intent is to help enough to want to make you want to stay in your house in a way you can afford to stay in your house."

Eligibility depends on those five banks with Bank of America having the broadest policy of at least 60 days of delinquency or proof of immediate foreclosure danger.

Every bank has different qualifications for eligibility and all this is still very new.  So to get you started we've got two things you can do.

First, if you're eligible you should receive a statement in the mail from the North Carolina Attorneys General so keep an eye out for that.

Second, you can call your bank at the numbers below and request to check your eligibility.

• Bank of America: 1-877-488-7814
• Citi: 1-866-272-4749
• Chase: 1-866-372-6901
• Ally (formerly GMAC): 1-800-766-4622
• Wells Fargo: 1-800-288-3212

Their is also a website designed specifically for the settlement.  You can visit it here.