Tallahassee, FL -- February 9, 2012 --

President Obama announced on Thursday that a $26 billion dollar settlement has been reached to help with the mortgage crisis.

Five major mortgage providers, $26 billion. The payout includes $17 billion in mortgage relief to over $1 million homeowners, $1 billion to the feds, and $3 billion to help borrowers refinance. Thousands of people who lost homes will get payments of $1500 to $2000.

"It's almost like after the fact as opposed to, it might have been better if, you know, they had not foreclosed on certain situations," said Jack Davidson of Davidson Realty.

"The cash settlement is not gonna be a total windfall for anyone. You know, it could help some, but if you lost your home, and possibly your job on top of that, this settlement isn't gonna be a life changer for you," said Bruce Hagan, a Certified Financial Planner in Tallahassee.

People who can now refinance will benefit the most. The goal is to decrease foreclosures and boost the housing market.

Tallahassee wasn't hit nearly as hard as some other areas in the state or the country. Still, local experts say homes have seen their prices impacted by the increase in foreclosures.

"When someone goes to buy a new house, they have to wonder whether its gonna appraise because of maybe a couple of foreclosures in a certain area or subdivision," said Davidson.

Fewer foreclosures means less competition. Prices can go up and the market can begin a recovery. That is the intention of the settlement.

The companies named in the settlement include JP Morgan Chase, Bank of America, Citigroup, Ally Financial, and Wells Fargo.

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Big banks, gov't officials strike $25B deal

After more than 16 months of negotiations involving all 50 U.S. states, federal authorities and five of the nation's largest mortgage lenders, a $25 billion deal has been struck to provide relief for some Americans who are dealing with foreclosure. Wyatt Andrews reports.