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Lynn Caison Johnson's Blog

By Lynn Caison Johnson | Agent in Rockport, TX

Mortgage Settlement Money...Are you owed money?

..many of your friends (and maybe YOU) are eligible for $1000s….potentially 10s of $1000s in payouts.

Got your attention? Read on..

Remember the big hoop-la about the opportunity for owners to have their foreclosure cases reviewed and obtain possible restitution?

These reviews were mandated as part of settlement last year over alleged foreclosure abuses.Well months later only a small percentage of eligible borrowers have responded. The reviews are separate from the $25 billion mortgage-servicing settlement that state and federal officials reached this year.

According to the Office of the Comptroller of the Currency less than 165,000 people had applied to have their foreclosures reviewed — about 4% of the 4.1 million who received letters about the free reviews.

Regulators are attempting again to contact former owners with another mailing that goes out in early June to nearly 4 million households.

Even though letters went to more than 4 million households, consumer advocates say follow-up advertising has been ineffective, leading to the low response rate.

The deadline to request a review  July 31. If errors are found, restitution could run from several hundred dollars to more than $100,000.

Rules to qualify for a review:

* Mortgages had to be in the foreclosure process in 2009 or 2010

* The mortgage has to be on a primary residence.

* The mortgage had to have been serviced by one of the 14 servicers or their affiliates, including Bank of America, JPMorgan Chase, Citibank and Wells Fargo.

More information is at independentforeclosurereview.com.

Be clear, this review for possible restitution program is IN ADDITION to the money many former borrowers could obtain..review:

The $25 billion mortgage settlement, borrowers who lost homes to foreclosure could be eligible for payouts from a $1.5 billion fund….resulting in  750,000 borrowers getting about $2,000 each.

For more information on that, go to nationalmortgagesettlement.com.

Source:  Real Estate Insider News, Tim & Jule Harris, published 5/24/12

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