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Report shows mortgage loan settlement aids Tennessee homeowners

There is good news for the Tennessee economy and homeowners, who have faced financial challenges in paying mortgages. A recent report revealed that homeowners in Tennessee are receiving a bit of debt relief from the recent mortgage loan settlement that was reached.

The mortgage loan settlement agreement involved five of the nation's top mortgage providers, which promised approximately $140 million to Tennessee alone to assist with the increasing problem of homeowner losses. According to a monitor of the settlement, $36 million in relief has already reached approximately 2,000 homeowners in Tennessee.

Of the $25 billion promised to various states, $20 billion of that is provided in the form of debt relief for struggling homeowners. A large amount of the assistance involves short sales, which allows homeowners to sell their homes for less than what is owed.

Mortgage loan settlements generally help those going through financial challenges with their mortgage payments. The current struggling economy left many homeowners trapped in homes that were worth far less than the amount owed on the mortgage. Mortgage debt relief can alleviate a great deal of the stress and can often lead to a fresh financial start. Lenders may also reduce mortgage debt with homeowners or help them refinance at a lower rate for manageable payments. Reduced interest payments alone can mean the difference between an affordable mortgage and a mortgage that cannot be paid.

There are a number of reasons a person may find themselves in financial difficulty, sometimes by no fault of their own. Unexpected life changes, credit card debt, medical bills and sudden unemployment are often contributing factors. Luckily, for Tennessee, the mortgage loan settlement agreement offers a little assistance in debt relief.

Source: The Commercial Appeal, "Report: Tennessee homeowners benefit from recent mortgage loan settlement," Aug. 30, 2012

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