The United States President Barack Obama-led administration recently reached a landmark $25 billion mortgage fraud settlement with several of the top lending institutions in the nation, including Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial.

The agreement essentially addresses three different groups:

• compensating foreclosure victims of the “robo-signing” scandal
• helping distressed homeowners avoid foreclosure
• offering “underwater” homeowners principal loan modifications

Every state with the exception of Oklahoma, which opposed the massive fine levied on the banks, will receive a share of the settlement money to disperse to its eligible constituents. The big banks, meanwhile, will be immune from further prosecution in exchange for their cooperation and combined restitution pledge.

The intended goal of the settlement is to contribute toward the improvement of the nationwide housing market in particular and the economy in general. That’s a noble initiative, one that will hopefully be realized one day soon, but we realize it won’t mean much if folks don’t know how to take advantage of the situation.

So the billion-dollar question: How do you find out if you are eligible for assistance?

First, understand that this is a program that will take individual state Attorneys General about six to nine months to set up. The settlement agreement will then be carried out over a three-year period because it is so complex. Borrowers, therefore, will not immediately know whether or not they will be eligible for relief.

Having said that, it shouldn’t stop them — or you — from exploring your options immediately and initiating the process sooner rather than later.

How do you go about that?

NationalForeclosureSettlement.com is a fantastic resource. We suggest you visit the informational website and learn as much as you can about your loan, which bank/servicer owns it and whether or not it is included in the settlement.

In the meantime, if you already know that one of the big banks mentioned above services your loan then we suggest you contact them as soon as possible. Here are their respective hotline phone numbers:

• Ally/GMAC: 800-766-4622
• Bank of America: 877-488-7814 (Available M-F from 7 a.m. – 9 p.m. CT and Saturdays 8 a.m. CT – 5 p.m. CT)
• Citi: 866-272-4749
• JPMorgan Chase: 866-372-6901
• Wells Fargo: 800-288-3212 (Available M-F from 7 a.m. to 7 p.m. CST)

Again, for complete details on the recent $25 billion national mortgage settlement agreement we suggest that you visit NationalForeclosureSettlement.com.

There aren’t many of them these days, but a 12-year-old boy named Noah recently spun a real-life, feel-good foreclosure fable.

And it was all made possible thanks to technology and the support of generous friends, family and even complete strangers from their local community.

Noah overheard that his grandmother was weeks away from losing her home in Steven’s Point, Wisc., to foreclosure. She needed to come up with $10,000 in delinquent mortgage payments or would face eviction on Valentine’s Day (Feb. 15, 2012).

Prior to Noah’s eavesdropping, it was pretty much a done deal — grandma was out of options and had no other choice but to vacate the premises. However, Noah sprung into action and posted a plea online for financial assistance on his very own “Dream Catcher” network.

Here is what he wrote (via CBSNews.com):

“I want to give her her home back for Valentine’s Day!! I need to rasie $10,000 by the end of Jan to help her. It seems like sooo much money but if I have 400 friends who can spare $25.00 I can give her this gift!! Only 200 friends if they give $50.00…. She helps a lot of people, like foster children, and it would be more than me that just suffered.”

The inspiring message, and his last-minute effort, were a complete success. Noah was inundated with checks that ultimately covered the outstanding mortgage balance.

A savvy grandson to the rescue. A heart-warming community response. A proud grandmother avoids disaster.

Can’t script it any better than that.

In case you somehow missed the bad news, which borders on impossible, foreclosures are a pretty big problem these days. In fact, the national housing market has been in turmoil for about four years now.

The United States government was initially slow to respond, failing to recognize the magnitude of house of cards (pun intended) that was about to collapse. Eventually, several housing/foreclosure assistance programs, along with their requisite acronyms, were gradually rolled out over time.

Not a single one, or all of them in combination, however, have had their intended impact on recovery. Not yet, anyway.

In fact, in a recent Gallup Poll, 58 percent of Americans want the government to do more to prevent additional foreclosures. In contrast, 34 percent of Americans are against increasing government intervention and prefer that “housing market resolve its problems in its own.”

The complete study, which you can view right here, is more detailed, drawing distinctions between political parties, annual incomes and college graduates.

The good news is that Gallop reports that collective confidence about the national economy, as well as the job outlook, is on the rise. And well all know, people must have jobs and earn incomes to be able to afford houses.

That’s something that just isn’t happening right now, with only 66 percent of those polled owning their primary residences. That ties a 66 percent all-time low.

To read more about the government-backed foreclosure/housing assistance programs — HAMP, HARP, 2MP and HAFA — currently in place click here.

Slow ride, take it easy …

Many Americans are taking the Foghat approach to living these days, unable (or unwilling) to meet their monthly mortgage obligations and, in the process, living rent-free until theirs lenders evict them from their homes.

And with the average distressed homeowner able to live like this for nearly two years (674 days) it’s actually emerged as a popular “strategic” move because of the economic hardship plaguing millions throughout the nation. Indeed, according to a recent CNN Money report, nearly 40 percent of homeowners in default have not paid their lenders a single penny throughout the entire foreclosure process.

The other 60 percent in distress have made some sort of payment(s), ”looking for ways to make good with lenders and get their homes back.”

So how is it possible to live in a home for so long without paying a mortgage?

Well, first, there is the fact that the United States is in the midst of a terrible housing crisis — one of the worst ever.

Foreclosures are abundant, lenders are overwhelmed, robo-signing scandals are rampant, court rooms are beyond clogged with cases. All these conditions, and several others, add up to the foreclosure process taking much longer than it should.

But, that’s not all.

In states like Florida, where foreclosure can take more than three years or longer to complete, and elsewhere homeowners — along with their throng of foreclosure attorneys — have a few tricks up their sleeves to delay foreclosure even longer.

Among the many stall tactics:

• Challenging the bank’s actions
• Waiting to file paperwork right up until the deadline
• Requesting the lender dig up original paperwork
• Declaring bankruptcy ( in some extreme cases)

Meanwhile, the homeowners live rent-free for literally years, saving money and, in some cases, even making it by renting out rooms to friends and relatives, among others.

All the while, holding out hope that a resolution can be hatched that will help them stay put before the local Sheriff comes a knocking, demanding that they vacate the premises.