Many homeowners found themselves facing foreclosure due to circumstances beyond their control — and even through mistakes made by lenders. Shady practices by various lenders have resulted in foreclosure abuse that has been coming to light. Earlier this year, a number of lenders reached a $26 billion settlement  that requires them to take steps to redress some of the abuses that some homeowners have experienced.
That news made big waves while a smaller program was mostly overlooked. This other program allows homeowners to sign up for an Independent Foreclosure Review. That review, conducted according to guidelines set forth by the Federal Reserve and the Comptroller of the Currency, could result in up to $125,000 for homeowners who have suffered from foreclosure abuses.
What is the Independent Foreclosure Review?
This program is completely separate from the settlement that the largest lenders in the country agreed to with 49 states and the District of Columbia. Those who were victims of foreclosure abuse during the years 2009 and 2010 can apply for a review. The mortgage servicers that have agreed hire independent consultants to review abuses include HSBC, Bank of America, Citibank, Chase, PNC Mortgage, Wells Fargo, and MetLife Bank.
Homeowners who want to have their cases reviewed have until September 30, 2012 to apply for a review (the former deadline was July 31). So far, only a relative small number of cases have been submitted for review, and there are many more people eligible. Borrowers have been sent letters asking them to respond, and few have done so. Some of those who might be considered eligible for compensation due to mortgage abuses include:
- Service members who lost their homes while on active duty
- Homeowners put through foreclosure, even if they weren’t in default (including victims of robo-signing)
- Issues related to loan modification that led to foreclosure
- Homeowners experiencing foreclosure because of trial mortgage modification  errors
- Other problems and abuses
Compensation depends on whether or not you were able to get your home back. If you were able to get your home back after the foreclosure mess was cleared up, you might be eligible for $15,000. If you weren’t able to get your home back it’s possible to receive up to $125,000 — plus the value of your home’s equity at the time the foreclosure took place. This can be a great help to someone who has been struggling because of an unfair foreclosure. This is money that can be used to buy a new home (assuming things are cleared up to the point where foreclosure victims can qualify for a mortgage).
If you were the victim of foreclosure, you might be eligible to receive funds. An abused borrow can receive up to $125,000 plus the value of their home as a result of these abuses. If you have been foreclosed on, you might have been the victim of errors or other poor practices. In such cases, you might be entitled to compensation beyond what is offered by the $26 billion settlement. You can find more information by checking the Federal Reserve’s page on Independent Foreclosure Review .
(Photo: ImageMD )