Utah is receiving an estimated $171 million in money, reductions in mortgage principals and loan modifications as its portion of a sweeping $25 billion deal struck by 49 states and the federal government with five of the largest U.S. banks.
Many Utah homeowners who lost their homes to foreclosure over the past four years will get about $2,000 apiece in compensation. Those who are being foreclosed on or whose loan is for more than their home is worth (known as being underwater) could receive reductions in principals of their loans, modifications of the terms or forgiveness of penalties.
Others who can’t afford payments even with a modification could be allowed short sales for less than the worth of their loans or "cash for keys" deals that allow them to walk away. Salt Lake Tribune
