Home > Avid Law Center, Foreclosure > The Other Foreclosure Settlement

The Other Foreclosure Settlement

Distressed homeowners have heard a lot recently about the national $25B mortgage settlement. And while only some are able to cash in on the settlement, others are left wondering what other options are available to them.

Well they may be able to find some relief in the lesser known settlement that could lead to an even bigger payoff, in some cases.

According to CNNMoney.com, up to 4.3 million mortgage borrowers who were foreclosed on in 2009 and 2010 will have a chance to request an independent review of how their foreclosure was handled. This is part of a settlement that was approved last April with several mortgage servicers including Bank of America, Chase, Citibank, HSBC, MetLife Bank, PNC Mortgage and Wells Fargo.

However, only 90,000 eligible homeowners have requested independent reviews of their loans. The federal government has now extended the deadline to July 31 for those who wish to submit claims.

Compensation for claims is still to be determined but it will depend on the severity of their losses. According to Bryan Hubbard, a spokesman for the Office of the Comptroller of the Currency, borrowers who were improperly charged even just a single fee could be repaid for it and borrowers who suffer much larger losses could be eligible to receive more than the expected $2,000 from the recent national mortgage settlement.

From CNNMoney.com:

“Unlike the $26 billion settlement with the state attorneys general, borrowers didn’t have to lose their homes in order to receive compensation, according to Hubbard.

“It could be anyone who suffered financial loss because of errors made in the foreclosure process,” he said.

Since the settlements are completely independent of one another, claimants can double-dip, filing for compensation under both settlements.”

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