Expert explains mortgage settlement

TERRE HAUTE, Ind. (WTHI) - Homeowners struggling with mortgage payments get some positive news in Indiana.

Thursday state officials announced $30 million dollars in loan-term modifications coming to Indiana.

Here's how it would work. Up to 13,000 borrowers would be able to get $2,000 back. That's if their homes were improperly foreclosed upon between this year and 2008.

Experts say it would take at least three years before homeowners would see any of that.

Also, one expert believes it'll be a first come, first serve basis, meaning the money could dry up quickly.

News 10 spoke with Jim Nichols from First Financial Bank. He said the money is for people who've lost their homes.

"You know, the people that have really dug deep, and have tried to make it work, and have stayed current on their mortgage, they're not going to be the ones that are helped here," Nichols said.

He said that means we may not see much of an impact locally. That's because he believes many area borrowers have struggled, but are keeping ownership.