If you were in Foreclosure between 2009 and 2010 you may be getting a payment from your lender.
Foreclosure Payments/Settlements are from a $9 billion dollar settlement betweeen banking redulators over the Robo Signing Scandal.
Borrowers who were in the foreclosure process in 2009 and 2010 may want to watch their mailboxes closely starting mid-April.
Federal officials have sent out postcards to more than 4 million people across the nation to let them know cash is coming their way — part of a $9.3 billion deal between banking regulators and mortgage servicers that settle foreclosure-abuse allegations.
The allegations center on robo-signing, the bank practice of approving loan paperwork with little or no approval.
Expected payment amounts range from a few hundred dollars to $125,000, depending on the possible wrongdoing in each case, said the Office of the Comptroller of the Currency. A wrongly assessed fee would likely merit the minimum compensation, while a wrongful foreclosure could secure the maximum, a spokesman for the Office of the Comptroller of the Currency said in a previous interview with U-T San Diego.
Consumers did not have to fill out paperwork to receive these payments. Also, by taking the money, borrowers are not waiving their rights to pursue legal cases against those servicers, regulators said.
The settlement, originally pegged at $8.5 billion in January, replaced a costly and lengthy process that let borrowers request free foreclosure reviews. That process encountered a host of issues, from lack of participation to drawn-out review processes. Regulators got a total of 495,000 requests out of 4 million-plus solicitations. At least 56,000 of those came from San Diego County.
The new deal involves $3.6 billion in cash payments and the rest in mortgage assistance to people whose primary homes were at any point of the foreclosure process and whose loans were serviced by any of these companies:
America’s Servicing Company, Countrywide, PNC Mortgage, Aurora Loan Services, EMC Mortgage Corporation, Saxon Mortgage, BAC Home Loans Servicing, Goldman Sachs, Sovereign Bank, Bank of America, HFC, SunTrust Mortgage, Beneficial, HSBC, U.S. Bank, Chase, Litton Loan Servicing, Wachovia Mortgage, Citibank, MetLife Bank, Washington Mutual, CitiFinancial, Morgan Stanley Wells Fargo Bank, CitiMortgage, National City Mortgage and Wilshire Credit Corporation.
Borrowers will likely get letters from Rust Consulting, Inc., the consultant hired by regulators, within the next three to seven weeks. Others may be asked to provide tax information before a payment can be sent.
If you have questions on the settlement, call Rust Consulting at (888) 952-9105. If you want to read more about the foreclosure settlement, visit occ.gov/independentforeclosurereview.