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Victims of bad foreclosure practices can now apply for review and possible compensation

Dennis Norman, St Louis REALTOR - Robo Signing- Foreclosure Victim's - Apply for compensationIn late September I wrote about a plan presented by acting Comptroller of the Currency, John Walsh, to address the “robo-signing” issue as well as other improper practices in the foreclosure process that have surfaced. Mr. Walsh’s plan includes an independent review of the files of borrowers that feel they were a victim of a wrongful foreclosure practice as well as the potential for compensation or other relief for borrowers that were found to have been subject to improper foreclosure practices. Just this week it was announced that eligible borrowers may not apply for a review of their file and, if irregularities are found, file a claim for compensation.

Who is eligible?

To meet the initial criteria to qualify, your mortgage loan would need to meet the following criteria:

  • Your mortgage loan was serviced by one of the participating mortgage servicers.
  • Your mortgage loan was active in the foreclosure process between January 1, 2009 and December 31, 2010.
  • The property was your primary residence.

Will you be notified if you are eligible?

This week, the 14 mortgage servicers that are part of this program (see below for list) began mailing out letters to eligible borrowers. However, if you have moved, or they do not have your correct address, the letter may not make it to you.

Which lenders/servicers are involved?

  • America’s Servicing Co.
  • Aurora Loan Services
  • Bank of America
  • Beneficial
  • Chase
  • Citibank
  • CitiFinancial
  • CitiMortgage
  • Countrywide
  • EMC
  • EverBank/EverHome Mortgage Company
  • GMAC Mortgage
  • HFC
  • HSBC
  • IndyMac Mortgage Services
  • MetLife Bank
  • National City Mortgage
  • PNC Mortgage
  • Sovereign Bank
  • SunTrust Mortgage
  • U.S. Bank
  • Wachovia Mortgage
  • Washington Mutual (WaMu)
  • Wells Fargo Bank, N.A.

How to apply for a review of your file if you feel you are a victim of an improper foreclosure proceeding:

 

  • Call 1-888-952-9105, Monday through Friday, 8 a.m.–10 p.m. ET or Saturday, 8 a.m.–5 p.m. ET. This will put you in touch with a representative of the independent review and they will take your information over the phone (I think), help you fill out a claim form (if you received one in the mail) or send you a form.
  • There has also been a website set up and it was my understanding that you could file your claim online as well, but at this point you cannot- there is not a whole lot on the site so I’m thinking they may add the ability to file a claim online soon. In either event, click here for the website.
  • The deadline for filing a claim is than April 30, 2012.

 

 

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