Locals take advantage of mortgage help

AUSTIN (KXAN) - Texas homeowners could soon have a little relief with their mortgage payments. It is thanks to a landmark $26 billion multi-state settlement this week over abusive practices at the five largest mortgage lending companies.

Texans stand to gain about $287 million, while the state will get about $141 million for violations of state law.

It is still too early to tell who will get what, but one of those lenders -- Bank of America -- is already sitting down with Austinites who are teetering on the edge of foreclosure.

"Offer our customers information they didn't have before. Ideally, if they bring all their documents, we can have a solution, as well,” said Jessica Garcia with Bank of America.

Homeowners visited with counselors about loan modifications, financing and short sales.

"It's the dirty secret,” said Melissa Orren-Cordova, one of those housing counselors."The thing you don't want to talk about. It's the thing you don't tell anybody."

Orren-Cordova said sharing information about your financial trouble can be embarrassing. But when your house is at stake, it is necessary to talk to a counselor like her.

"Even if it's not the client's fault, it's still their responsibility to make sure that mortgage payment is paid,” she said.

Bank of America invited 5,800 if its local customers who are at least two months behind on their mortgage payments to the Austin Hilton this week. By Texas law, they could lose their home -- a foreclosure – after three months. Still, fewer than five percent of their invites have shown up, so far.

The event continues through Saturday, and organizers said homeowners must bring some very specific paperwork with them. Click here for more information .

There were not a lot of questions about the mortgage settlement at the event.In all reality, the settlement will help only a small portion of the millions of borrowers facing foreclosure. And the people who have already lost their homes over the last three years will probably get a check for around $2,000.