Foreclosure News: Vermont to receive $6.7 million in settlement with mortgage servicers

"Vermont is receiving $6.7 million in a settlement between states and the nation's biggest mortgage lenders over foreclosure abuses.

"Attorney General William Sorrell said Thursday the settlement provides $3.1 million to Vermont residents and $3.6 million to state funds that may be used for housing-related or other purposes.

"The banks include Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial

"Borrowers will receive about $1.6 million in benefits from loan modifications and other relief, such as principal reductions. Borrowers who lost their homes to foreclosure by the settling banks between Jan. 1, 2008, and Dec. 31, 2011, will be eligible for payments of about $2,000, totaling $411,000 to make up for any serving abuse that they may have experienced.

"The value of refinanced loans to Vermont's "underwater" borrowers whose homes are worth less than their mortgage is about $1.1 million."

This article was published in Business Week.

For more informaiton read the Attorney General's Press Release.