AUGUSTA — Maine officials say the state will get $21 million under a settlement between 49 states and the five largest mortgage lenders over foreclosure abuses.

Attorney General William Schneider said today the settlement is “the best first step to get relief directly to eligible Maine borrowers who were harmed.” Nationally, the settlement adds up to $25 billion. The mortgage lenders will have three years to fulfill the terms.

Of Maine’s share, Schneider says $7 million will go to borrowers in default, and $1.9 million is set aside for those who lost their homes. Another $4.5 million represents refinancing costs for borrowers who are “underwater,” meaning they owe more than their house is worth.

The remainder, $8.2 million, goes to foreclosure prevention programs, legal assistance to homeowners and the Maine general fund.


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