Have You Received a Foreclosure Review Payment?
Several clients have begun receiving checks as a result of errors made by mortgage servicers.
Unfortunately, the payments don’t begin to cover the actual loss suffered by many who lost their homes to foreclosure.
Or if they had to put up with multiple mortgage loan modification errors or problems.
Nearly four million people are eligible for the payments.
The payments range from $300 to $125,000 depending on the type of servicing error.
Only about 1100 of the four million people eligible to receive payments are eligible to receive the largest amount of $125,000.
The vast majority of borrowers will receive less than $1000.
Payments are for these categories:
- servicer failed to engage with a borrower in a loan modification
- modification request was denied
- servicer completed foreclosure on a borrower performing all the requirements of a trial modification
- servicer initiated foreclosure on someone in bankruptcy
- mortgage servicer foreclosed on an active duty military member
- and where a mortgage servicer failed to convert a borrower from a trial to a permanent modification
Borrowers who receive and accept these payments waive no rights or defenses they might have against a mortgage servicer.
A chart showing the number of borrowers in each category and the payment amount can be found on the website of the Office of Comptroller of the Currency.