The Star-Ledger

Banks Help N.J. Homeowners In Mortgage Trouble With $1.2 Billion

The Star-Ledger — Thursday, February 21, 2013

By Tom De Poto / The Star-Ledger

More than 14,668 New Jerseyans struggling or underwater with their mortgage received help from the nation's five largest lenders last year, according to the federal Office of Mortgage Settlement Oversight. Another 5,000 homeowners are in the process of getting relief.

In a deal struck last year between five banks and 49 states, the banks agreed to help modify or forgive loans that were the result of abuses, such as robo-signings.

More than $1.2 billion was distributed in New Jersey through a variety of programs, including refinancing, short sales and lien forgiveness. The average relief was $82,055, according to the federal agency.

Nationwide, 554,389 homeowners received some form of consumer relief totaling $45.8 billion from Ally, Bank of America, Citi, JPMorganChase and Wells Fargo.

Phyllis Salowe Kaye, executive director of New Jersey Citizen Action, said in a statement that the number of homeowners helped "is simply a drop in the bucket, given the tens of thousands of homeowners facing foreclosure in our state. The banks need to make more of an effort and take a much more creative approach to identify homeowners who could benefit from meaningful modifications and principal reductions."

Top Top | NJCA in the News | NJCA Homepage