AG Hands Out First Funds From National Foreclosure Settlement

Attorney General Lisa Madigan announced last week her office has distributed $4.7 million so far from the national foreclosure settlement reached earlier this year provide legal services to struggling homeowners.

As part of the national settlement, Madigan’s office recovered the money from banks to remediate the historic levels of foreclosure in Illinois.  Madigan announced in April she would distribute $20 million of the funds recovered in the settlement to legal aid services.

In addition to the cash payments to the State, Illinois borrowers will receive an estimated $1 billion in direct relief as a result of the national settlement to assist those who have lost their homes, are underwater or at imminent risk of defaulting on their mortgages. The settlement will also completely overhaul mortgage servicing standards to prevent future abuses by lenders.

Consumers seeking more information on the national settlement can contact Madigan’s Homeowner’s Helpline at (866) 544-7151, or visit the website, www.illinoisattorneygeneral.gov/consumers/bankforeclosuresettlement.html. Borrowers also can visit www.NationalForeclosureSettlement.com.