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Helping good people through bad times

Debt relief for some Chattanooga homeowners a few months away

When most people hear that there are massive bank settlements for billions of dollars, typically, they don't think they are going to benefit in anyway. However, in the case of one settlement, debt relief may be coming to millions of home owners sooner than they think.

In the next few months, 3.8 million homeowners will be contacted if they were improperly foreclosed upon in 2009 or 2010 because of an $8.5 billion settlement between ten banks and federal regulators. The ten banks that are involved will be paying out anywhere from hundreds of dollars to $125,000 to each affected homeowner, up to $3.3 billion dollars. Further, another $5.2 billion is to be used for loan modifications and other assistance for borrowers. Many borrowers may be contacted by March, if they may be entitled for some relief.

For some people, the settlement may be exactly what they need to face their financial challenges, get on a reasonable repayment plan or loan modification with their banks and be able to prevent foreclosure attempts by the bank. For others, who may have other issues, such as medical debt, spousal support payments or loss of income, the settlement may not be enough. For those people, the only option may be filing for bankruptcy.

For someone struggling for debt relief, especially trying to prevent foreclosure, seeking out help as soon as possible is often the best option. Many times, by starting early, the debt relief becomes much easier than waiting too long.

Source: Orange County Register, "Foreclosure settlement cash a few months away," Richard Clough & Jeff Collins, Jan. 9, 2013.

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-624-4002
Toll Free: 800-257-7594
Fax: 423-624-0509
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