Claims Process Underway for Foreclosed Homeowners

by devteam September 26th, 2012 | Share

A number of state attorneys general (AG)rnsent out nearly identical notices this week regarding the April $25 billion, 49rnstate settlement with mortgage servicers. rnThe notice, addressed to borrowers who lost their homes to foreclosurernbetween January 1, 2008 and December 31, 2011 advised of possible compensation fromrnthe settlement and that the claims process has begun. </p

Eligible borrowers are those who had mortgagesrnwith Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo, thernnation’s five largest mortgage servicers. rnThe settlement with these servicers earmarked $1.5 billion in paymentsrnfor 1.75 million borrowers who lost their homes to foreclosure during therndesignated period. The payments will be at least $840, and will very likely bernhigher, depending upon the number of borrowers who decide to participate.</p

The national settlement administratorrnnotified eligible borrowers about the settlement by mail last week and packetsrnwith claim forms, instructions, and explanatory information are nowrnavailable.  MND received identicalrnnotifications about the claims process from seven state AG offices thisrnmorning, each saying that packets were being mailed to borrowers today so wernassume the mailing was national in scope. rnEligible borrowers who do not receive a packet should contact their ownrnstate AGs office.</p

The deadline for all claims is Jan. 18, 2013. Payment checks are expected tornbe mailed in 2013.

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About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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