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Millions eligible for foreclosure reviews

Homeowners can receive compensation if the review shows that their foreclosure was not handled properly.

By MSN Money Partner Nov 3, 2011 2:25PM

This post comes from Jamie Pietras at partner site Credit.com.

 

Credit.com on MSN MoneyThis week, federal bank regulators rolled out details of a program intended to help homeowners whose foreclosures were processed based on erroneous paperwork.

 

Mortgage servicers have already begun sending mailings to borrowers, explaining how they can request that an independent consultant review their case "if they believe they suffered financial injury as a result of errors, misrepresentations, or other deficiencies in foreclosure proceedings," according to the Office of the Comptroller of the Currency.  Post continues below.

To be eligible, borrowers must have had loans in the process of foreclosure between Jan. 1, 2009, and Dec. 31, 2010. The Washington Post reports an estimated 4 million borrowers are entitled to ask for a review.

 

If the consultant determines that mistakes or misrepresentations were made, homeowners can receive compensation. Situations that might warrant redress include "unwarranted or miscalculated fees charged to borrowers, a foreclosure that happened while a borrower was already in bankruptcy protection, or a property that underwent a foreclosure sale even as the borrower was awaiting word on a loan modification from the servicer," the Post reports.

 

The independent review program is the result of an enforcement action leveled by the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Office of Thrift Supervision against 14 large residential mortgage servicers and two third-party vendors back in April.

 

Mailings will continue until year's end, and review requests must be received by April 30, according to the OCC. For additional information, visit this website.

 

More on Credit.com and MSN Money:

4Comments
Nov 3, 2011 9:14PM
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Can you imagine the tremendous amount of money that will be wasted by this stupid program?   WHY can't they use common sense?  At least make the 'consumer' provide some evidence before granting a 'review' that I and the other tax-payers will be on the hook for.
Nov 4, 2011 10:17AM
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If the person didn’t pay and they were foreclosed on they’re unlikely to get anything, even if all the “T’s” weren’t crossed.

 

If there is a review the whole mortgage will get scrutinized.  Since so many people committed fraud by lying on their mortgage applications asking for a review may be more trouble than it’s worth.  If lenders have to expend the resources to review a mortgage they’ll quickly spot the fraud and may even file a criminal complaint against the liar for defrauding them.

Nov 3, 2011 10:46PM
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Sjkmware

If that childish rant was aimed at me, at least get the basics down.  I am a democrat.  Registered in Walton County Florida since 1979.  But I do understand why my republican friends accuse us of unprovoked and baseless name-calling, and refusing to deal with facts.  your little rant really proved how right the 'right' can be concerning some of us.

Nov 3, 2011 10:07PM
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Screw you republican conservative jerk
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