Some Michigan homeowners will be getting a cash payment as the result of a National Mortgage Settlement, while others will get lowered interest rates or loan modifications.

But all should be on the lookout for settlement scams.

Michigan was one of the 49 states that entered into settlements with the five leading bank mortgage servicers: Bank of America, Citi, Chase, Wells Fargo, and GMAC/Ally.

Under the settlement, the servicers will spend at least $25 billion to provide various forms of consumer relief, including principal balance reductions, interest rate reductions, short sales, and deeds in lieu of foreclosure.

Michigan Attorney General Bill Schuette has issued the following consumer alert:

Scammers are already trying to use the national mortgage settlement to swindle consumers. The attorneys general have received reports of thieves calling borrowers claiming to be one of the major banks involved in this settlement and offering a cash payment to consumers if they simply provide the bank routing number to access their bank account. Other scams have offered to get people money under the settlement quickly if the consumer pays an up-front fee.

Are you an eligible homeowner? Here are some safety pointers:

• Claims notices started going out by mail in September 2012.

• You will be contacted by your loan-servicing company.

• Do not provide personal or financial information to anyone who contacts you by phone or email. Your lender should already have your account number and pertinent information.

• Do not communicate with anyone who wants to charge a fee – the relief is free.

• If you have the slightest concern, request contact information, then call your bank’s hotline: Ally/GMAC: 800-766-4622; Bank of America: 877-488-7814; Citi: 866-272-4749; JPMorgan Chase: 866-372-6901; Wells Fargo: 800-288-3212.

• Contact an experienced Michigan commercial lawyer for a free consultation about your legal rights.

Michigan residents who think they are being scammed should go to www.michigan.gov/ag and click on the “Complaints” tab to file a complaint.

Additional information about the National Mortgage Settlement is available at www.michigan.gov/mortgagesettlement and at www.nationalmortgagesettlement.com

Free Consultation With a Michigan business lawyer at The Stroble Law Firm

Got a claim under the National Mortgage Settlement? Unsure how to get relief? Talk with an experienced Oakland County business and commercial lawyer about your rights and options free of charge. Call 866-474-8357 or use this online contact form.

Source: Michigan Attorney General’s Office http://www.michigan.gov/ag/0,4534,7-164-17337-276155–,00.html