Big news for homeowners upside down on their mortgages or forced into foreclosure after the housing collapse.
Attorney General Kamala Harris made California part of a $40 billion settlement with five of this country's biggest mortgage lenders and $18 billion of that goes to California.
If you were improperly foreclosed on, you could be getting a check for $2,000. If your home is now worth less than your mortgage, you could see an even bigger chunk of dough with this settlement. But, the fine details have yet to be released and there are many unanswered questions.
"The banks are putting up the money, it's not coming from the taxpayers. That's a good thing for a change. And, also it will help supposedly people who are underwater on their mortgages, and we don't know whats going to happen," said Scott Tobias, President of the Bakersfield Association of Realtors.
This won't help if your mortgage is through Freddie Mac or Fannie Mae which account for 67% of the homes in California.
But, if your bank is Wells Fargo, Bank of America, J.P. Morgan Chase, Citigroup, or Ally Financial you could see some money.
We talked to Wells Fargo and they said they will be sending notices to people who may qualify. But, Attorney General Harris says you shouldn't wait for it come to you.
So talk with your mortgage holder. Overall, this is only a drop in the bucket of distressed homes, some saying it's not enough and others still question why the banks didn't help before the mess.
"Me and my husband didn't understand why the banks didn't work with the people when they were still making their payments on time. They just may not have been able to make the full amount and just work with them. I think that would have helped us overall in California as far as financially all across the board." said Bobbie Gollehon, a Bakersfield homeowner.
The fine details of the program will dictate who gets what and when they get it.
