Tens of thousands of New Mexicans who have tangled with foreclosure will benefit from a national settlement that will bring about $92 million to the state, Attorney General Gary King said.

The landmark $25 billion settlement between major banks and state and federal governments will pay for more counseling for those in or facing foreclosure, a hotline for consumers with questions about their loans and direct payments of up to $2,000 for those who already have lost their homes.

The settlement also sets up a process for people to apply for loan modifications, including principal or interest reductions.

People affected by the settlement will be sent a letter explaining the terms of the settlement, King said in an interview Thursday. They also can find more information online about the settlement at www.nationalforeclosuresettlement.com or on the Attorney General's Office website, nmag.gov.

"One of the best things about this settlement is that there are opportunities now for people damaged by the mortgage servicers to get some real help, money, counseling, opportunities to renegotiate mortgages," King said. He also said the settlement, announced by President Barack Obama on Thursday, calls on banks and lenders to report to a federal monitor about changes they are making to their lending programs.

Of the total, $11.7 million will go to helping homeowners through education programs, a hotline, counseling and a mediation program.

Another $4.5 million will cover the payments of up to $2,000 to qualified recipients who have been through foreclosure already.

Separately, $12.5 million will go to directly help homeowners who qualify for help in refinancing, including borrowers who are underwater on their house and current on their loans.

Another $63 million will go to help those who qualify for principal or interest reductions on their loans, King said.

King and other attorneys general from around the country worked on the settlement for about a year and stepped up their efforts in the last three months to come to terms on which everyone involved could agree.

Not everyone is thrilled with all parts of the plan.

Brian Thomas, an Albuquerque attorney who took his first foreclosure case 10 years ago and deals with about 50 clients in foreclosure a year, said the counseling and education programs could help those in or close to foreclosure, but not those who have been through it.

"The only benefit that goes to a homeowner who has already lost their home is the possibility of a very modest payment," he said.

He likes that the settlement calls for education, and he hopes for more transparency in the lending process. He'd also like to see banks and lenders be more accountable to their customers.

"The recurring complaint is they call their servicers, can't get an answer, and they call their bank and can't get an answer. I know people who have called for years."

About 9,000 New Mexicans have gone through foreclosure in each of the past few years, said Karen Meyers, head of the Consumer Protection Division of the Attorney General's Office.

Currently, 17,500 mortgages are seriously delinquent, she said.

She said the settlement doesn't stop any foreclosures in progress, and those going through the process should continue to respond to filings in their case.

Contact Kate Nash at 986-3036 or knash@sfnewmexican.com.