Independent Foreclosure Review
Independent Foreclosure Review may allow foreclosed homeowners whose lenders
pushed their foreclosures through the system to get paid.
More than 4 million mortgage borrowers who were foreclosed on between 2009 and
2010 will have a chance to request an independent review of how their
foreclosure process was handled.
Should the review find that "financial injury" occurred as a result of an error
or other deficiencies in the way the foreclosure process was handled, the
homeowner may receive compensation for their losses. However, just how much
money the borrower will receive has yet to be determined.
The reviews are part of a larger enforcement action taken against 14 large
mortgage servicers last April by the Office of the Comptroller of Currency, the
Federal Reserve and Office of Thrift Supervision in the wake of the "robo-signing"
As part of that action, the lenders, which include Bank of America, Chase,
Citibank, GMAC Mortgage, HSBC Finance, Wachovia, Washington Mutual and Wells
Fargo, agreed to clean up their foreclosure practices and repay victims who were
"The independent foreclosure review is a significant component of the mortgage
servicers' compliance with our enforcement actions", said acting Comptroller of
the Currency John Walsh.
When foreclosures flooded the system after the housing bust, many mortgage
servicers became more cavalier in the way they handled foreclosures. Affidavits
and other documents were
signed by low-level employees who had little or no
knowledge of what they were attesting to, attorneys hired to manage
foreclosure process were
providing inadequate oversight, and
many bank employees were ignoring
requirements to halt foreclosure procedures if
loans were in the modification process.
The mortgage servicers agreed to review
foreclosure cases that occurred between
January 1, 2009 and December 31, 2010 and determine if borrowers suffered
financial losses as a result of any of these practices.
Letters will be sent to borrowers starting Tuesday November 1st, that
will explain how to request case reviews. Foreclosures must have been on primary
residences, and borrowers have until April 30, 2012 to request reviews.
Consultants will examine each foreclosure on a case-by-case basis and could
spend months coming to their conclusions. At this moment there is no firm
estimate of how much the claims could wind up costing the banks but it could
certainly run into the hundreds of millions of dollars.
If you believe you may be eligible but do not receive a letter, you may visit
http://independentforeclosurereview.com/ for more information about the review process or call
The reviews are completely free for all eligible borrowers. Consumers should
beware of anyone requesting to be paid for this service or who claims they can
influence the outcome of the review.
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