$26B mortgage deal: Will it aid you?

This post comes from Marilyn Lewis at MSN Money.

Today's the day. Homeowners have waited nearly a year for state attorneys general to wrestle with five big banks and come up with a settlement over mortgage-servicing abuses like robo-signing.

Finally, a deal: The banks will pay at least $26 billion over three years.

Here's a round-up of what it's likely to mean -- or not mean -- to you.

Will it turn your life around?

No. Don't expect a miracle to come from this deal. Reports The New York Times:

"I just don't think it's going to be a life-changing event for borrowers," said Gus Altuzarra, whose company, the Vertical Capital Markets Group, buys loans from banks at a discount.

Who's eligible?

The states: 49 of the 50 states took part. The holdout is Oklahoma. Unless Oklahoma signs on, borrowers there will be excluded.

How many people benefit varies by state. In Idaho, for example, borrowers will receive almost $100 million from the settlement, NPR reports. According to The New York Times:

In New York State, more than 46,000 borrowers will receive some form of benefit from the settlement, including an estimated 21,000 who are expected to owe less because their principal will be reduced, according to estimates by the Department of Housing and Urban Development.

The banks: You're possibly in the running for a piece of the settlement if your loan is "serviced" (mortgage payments are collected) by Wells Fargo, Ally Financial, Bank of America, JPMorgan Chase and Citigroup. They manage payments on 55% of American home loans.

It’s probably too soon to figure out if you'll qualify, but you can call your mortgage servicer to ask. (Remember to grab some paperwork with your loan number before you dial). Also, watch the official National Mortgage Settlement site for announcements and information.

The Wall Street Journal lists these contact numbers and hours:

• Ally/GMAC: 800-766-4622
• Bank of America: 877-488-7814 (Mon. - Fri. 7 a.m. - 9 p.m. and Sat. 8 a.m. - 5 p.m. CST)
• Citigroup: 866-272-4749
• JPMorgan Chase: 866-372-6901
• Wells Fargo: 800-288-3212 (Mon. - Fri. 7 a.m. - 7 p.m. CST)

The homeowners: About a million homeowners will get a refinance or have their loan balance paid down somewhat. In addition, some people who have already lost a home to foreclosure will get small payments. Post continues below.

Who gets what: Here's the breakdown, according to The Times:

• $5 billion in cash payments to states and federal agencies
• $17 billion to help homeowners
• $3 billion for refinancing
• $1 billion for the Federal Housing Administration

You will definitely not qualify if your mortgage is supported or owned by Freddie Mac or Fannie Mae. Use Fannie's and Freddie's loan look-up sites to see if yours is one of those:

• Fannie Mae loan look-up
• Freddie Mac loan look-up

The timeline: According to the official deal site, it will take:

• 30 days to identify someone to administer the settlement.
• Six to nine months to identify homeowners eligible for the cash payments, principal reductions and refinancing. If you're eligible, you'll get a letter in the mail. If you're worried the bank can't find you, contact your state's attorney general.
• Up to three years for help to be delivered.

More on who's eligible

News reports are fleshing out a little more detail on who will qualify under the categories above.

Principal reductions: Apparently only homeowners who are behind on their mortgage payments will be eligible to have some of the balance shaved off their loans. This $10 billion in help applies to first or second mortgages and liens.

The Wall Street Journal has more on this category:

For one thing, borrowers have to be behind on their payments or at "imminent risk" of default. The owner of your loan also makes a difference. Most of the principal reductions are expected to go to borrowers whose loans are owned by the banks, though some borrowers whose loans were packaged into securities may also qualify.

Refinancing: The only loans eligible for refinancing are mortgages owned by the banks that signed the deal, says the Journal. That's a relatively small number. Apparently, those eligible for this $3 billion chunk are homeowners who are up-to-date on payments but who can’t refinance at current low rates because their homes are "underwater" -- worth less than the value of the mortgage.

Foreclosed homeowners: The deal sets aside $1.5 billion for roughly 750,000 people who lost homes to foreclosure between September 2008 and December 2011, according to the Journal.

Bottom line: "Borrowers could receive $1,500 to $2,000 each, with the actual amount paid depending on the number of borrowers filing a claim."

Foreclosed homeowner Nadine Bond of Middletown, Conn., told the Journal: "It will help, but it is not going to get my home back."

Ineligible? Wait, there's more

The Times reports that two other big mortgage-servicing settlements were announced today:

A mortgage servicing subsidiary of Bank of America agreed to settle Federal Trade Commission charges that it illegally assessed more than $36 million worth of fees against struggling homeowners, in violation of an earlier settlement with the FTC.

Bank of America, Citigroup, JPMorgan Chase and Wells Fargo also agreed to pay a penalty of $394 million as part of a settlement over foreclosure abuses, the Office of the Comptroller of the Currency said.

More on MSN Money:

• Should more homeowners walk away?
• Today's lowest mortgage rates
• Detroit squatters can keep homes
• Why whirlpool tubs are for suckers
• Should you sue your lender?
• What happens to people after foreclosure?