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Foreclosed Homeowners Could Receive Payments

If your home was foreclosed you could be receiving some settlement money, according to this press release from the Connecticut Attorney General's office.

 

Payment claim forms are going out to thousands of Connecticut borrowers whose homes were lost to foreclosure between Jan. 1, 2008 and Dec. 31, 2011, and who may be eligible for payment under the $25 billion National Mortgage Foreclosure settlement, announced Attorney General George Jepsen in a press release.

Eligible borrowers were foreclosed upon during that period and had mortgages with Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo, the nation’s five largest mortgage servicers who agreed to the settlement with the federal government and attorneys general for 49 states and the District of Columbia. 

The settlement, which took effect in April, earmarked $1.5 billion in payments for 1.75 million borrowers who lost their homes to foreclosure during that period. The payments will be at least $840, and will very likely be higher, depending upon the number of borrowers who decide to participate.

“This payment is intended as partial compensation for the illegal conduct of the mortgage servicers,” said Attorney General Jepsen, who helped to negotiate the settlement agreement. “Unfortunately it will not help everyone, nor restore homes that were lost to foreclosure. But it represents help that otherwise would not have been available to borrowers, who can still pursue any legal claims they have against the servicers.”

Nearly 9,000 notices are going out in Connecticut based on 7,600 eligible loans. Co-borrowers with different addresses will each be sent a notice package.  If both return forms, they will split the payment amount. 

Attorney General Jepsen said the one-page claim forms are simple to complete. He Connecticut borrowers to fill out and return them as soon as possible in the envelope provided, or file their claims online at www.nationalmortgagesettlement.com. The deadline for all claims is Jan. 18, 2013. Payment checks are expected to be mailed in 2013. 

Last week, the national settlement administrator mailed notification postcards to the eligible borrowers nationwide. Beginning today and continuing through Oct. 12, packets containing a letter from the Attorney General, claim forms, instructions and other explanatory information are being mailed to eligible borrowers in Connecticut.

Borrowers who believe they are eligible, but did not receive notification should e-mail administrator@nationalmortgagesettlement.com or call a toll-free number: 1-866-430-8358. The same contacts may be used by borrowers who have questions or need help filing their claim. The information line is open Monday through Friday from 8 a.m. to 8 p.m.

Jerry Slomski September 25, 2012 at 03:38 PM
It's a shame the banks were allowed to get away with this. And now, we're just going to give them a slap on the wrist. I know of some one who tried to make partial payments to catch up, but was told by the lender that only the full amount due was acceptable, and eventually, the house was pulled out from under this person. What a tradgedy that an innocent family has no home and must rent, and have a tarnished credit history, and the banks, BUSINESS AS USUAL.
Lynn September 26, 2012 at 12:49 AM
I can understand this settlement money if you offered to make payments and the bank said no - but otherwise- NO Way should someone be compensated for bailing out!!! How about focusing on the immoral practices of credit card companies...
Grumpy Guy September 26, 2012 at 03:52 AM
Jerry S, its just not that simple. While you know someone who lost a house, you probably didnt know all the details behind the whole thing. Since they went into foreclosure in the first place, that means that they were missing payments and that will also tarnish a credit history. And if they are renting, that means they do have a home-they just dont own it. And Lynn- you nailed it. Some of these people never tried to do anything, they simply walked away from the house.

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