Foreclosure checks turn out smaller than expected

Some borrowers are receiving payments of a few hundred dollars -- not the thousands they were anticipating.

By Kim Peterson May 1, 2013 4:08PM
Foreclosure settlement checks are in the mail -- and some borrowers are bitterly disappointed in the amount they are receiving.

The checks are being sent out as a result of a massive settlement between banks and federal regulators, and apply to borrowers who entered foreclosure in 2009 and 2010. The entire investigation, review process and subsequent sweeping under the rug of the issue has been a disaster, and borrowers hoped to find some closure in the checks being sent out.

The first round of checks were supposed to average about $125,000 each and go to the people perhaps treated the worst by banks. They include nearly 1,100 service members foreclosed on illegally, The New York Times reports, and 53 other borrowers who were hit with foreclosures even though they had never missed a mortgage payment.

One service member, Adam Crain, expected $125,000 after his home went into foreclosure when he was serving on a naval vessel in the Middle East, The Huffington Post reports. He looked at this table and figured he would see that amount.

But all he got was $800, a figure reportedly determined by his bank, Wells Fargo (WFC).

Crain is not alone. The Huffington Post reports it has been contacted by more than a dozen people who say their checks are smaller than what they expected to receive.

The Occupy Homes MN site has more stories of people angered by their check amounts. "It feels like a slap in the face, and I'm underwhelmed," said one man who was reportedly foreclosed on by Bank of America (BAC) in 2009 and received a loan modification a year later with another 30 years tacked on. His check came to $400. "What I am upset about is that these payments don’t even help folks who’ve been kicked out of their homes put money towards a new home. This gives big banks reprieve from their crimes while getting off cheap and continuing to make record profits."

More on moneyNOW




VIDEO ON MSN MONEY

18Comments
May 1, 2013 5:47PM
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If they made their payments then they have a right to damages. If they didn't make them , they have no beef.
May 1, 2013 6:27PM
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What you mindless Obama-zombies refuse to accept is that your Lord and Savior Emperor Obama, and his corrupt administration, are just as much in bed with the big banks as your arch-enemy Bush. You will NEVER admit that though, the Emperor can do no wrong!

Wonder why no one has been charged with ANYTHING for the economic collapse? Because Obama's golden boy Eric Holder and his deputy Lanny Breuer work for the big banks! Don't take my word for it, research on your own and see what they did before Dear Leader appointed them to defend you and the law...their job was defending white-collar criminals, mostly bankers and financial mangers. Why would they prosecute the people they work for?

Admit it, Obama is a CROOK and a LIAR. You MORONS that voted him into office were DUPED.

May 2, 2013 8:37AM
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Hey Taxpayer1... you DO realize that these checks are for WRONGFUL foreclosures, right? Some of these people didn't even have credit with the bank and law firm that repossessed the home. Shove your anti-tax mentality up your >>>> and relocate. We pay TAXES in America. Those who don't-- go harm some other country.
May 1, 2013 4:46PM
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Hope & Change at work!

This must be Bush's fault. Or the House Republicans. It couldn't possibly be Emperor Obama or the Dems, they look out for the people and fight the big banks, right? RIGHT?

May 1, 2013 10:44PM
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I received a letter from  Nevada Attorney General Catherine Cortez Masto stating that I would receive a check for not less than $840.00 and most likely more. What I actually was sent was a check for $300.00. I e-mailed her but of course never got the courtesy of a reply.

Why bother to send a letter to me with a hollow promise?

May 2, 2013 8:46AM
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Worth reporting... the EUC has lowered the BANK borrowing rate to 1/2%. Over 90% of Europeans cannot qualify for credit so ONCE AGAIN, banks are giving away cash and credit to the wealthy and screwing a whole continent. Our markets are UP in pre-bell activity... must mean Wall Street WANTS rebellion and Chaos. If you are in it... you are aiding and abetting terrorism.
May 1, 2013 5:30PM
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SICK P22OSE, without Hope & Change, these people will not get anything and they have to pay the bank.
May 2, 2013 3:21AM
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It's amazing that some of you see everything as the fault of the President..... The article said some got less than what they were looking forward to, MEANING most got what they were expecting or more. Why did the others got less than what they expecting the article DOESN'T say..... BAD journalism indeed ..... but with every agreement/settlement the DEVIL is in the details.

 

If IRS says the average refund is $850 that doesn't mean everyone gets $850; it means some get more others  GET LESS.

Let us think through things and hold our journalist to a higher standard.

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