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Foreclosed Homeowners Could Receive Payments

If your home was foreclosed you could be receiving some settlement money, according to this press release from the Connecticut Attorney General's office.

 

Payment claim forms are going out to thousands of Connecticut borrowers whose homes were lost to foreclosure between Jan. 1, 2008 and Dec. 31, 2011, and who may be eligible for payment under the $25 billion National Mortgage Foreclosure settlement, announced Attorney General George Jepsen in a press release.

Eligible borrowers were foreclosed upon during that period and had mortgages with Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo, the nation’s five largest mortgage service providers who agreed to the settlement with the federal government and attorneys general for 49 states and the District of Columbia.

The settlement, which took effect in April, earmarked $1.5 billion in payments for 1.75 million borrowers who lost their homes to foreclosure during that period. The payments will be at least $840, and will very likely be higher, depending upon the number of borrowers who decide to participate.

“This payment is intended as partial compensation for the illegal conduct of the mortgage servicers,” said Attorney General Jepsen, who helped to negotiate the settlement agreement. “Unfortunately it will not help everyone, nor restore homes that were lost to foreclosure. But it represents help that otherwise would not have been available to borrowers, who can still pursue any legal claims they have against the servicers.”

Nearly 9,000 notices are going out in Connecticut based on 7,600 eligible loans. Co-borrowers with different addresses will each be sent a notice package.  If both return forms, they will split the payment amount. 

Attorney General Jepsen said the one-page claim forms are simple to complete. He Connecticut borrowers to fill out and return them as soon as possible in the envelope provided, or file their claims online at www.nationalmortgagesettlement.com. The deadline for all claims is Jan. 18, 2013. Payment checks are expected to be mailed in 2013. 

Last week, the national settlement administrator mailed notification postcards to the eligible borrowers nationwide. Beginning today and continuing through Oct. 12, packets containing a letter from the Attorney General, claim forms, instructions and other explanatory information are being mailed to eligible borrowers in Connecticut.

Borrowers who believe they are eligible, but did not receive notification should e-mail administrator@nationalmortgagesettlement.com or call a toll-free number: 1-866-430-8358. The same contacts may be used by borrowers who have questions or need help filing their claim. The information line is open Monday through Friday from 8 a.m. to 8 p.m.

Sean M September 25, 2012 at 01:17 PM
Let me understand this one. You buy a home, sign a contract to repay the loan, break that contract by not paying and you deserve to be compensated? The next time people wonder why banks are not lending, see this garbage.
Bob September 25, 2012 at 04:34 PM
I agree. But in some cases banks let more money to risky people than they should of. If a bank loaned me money and didnt properly explain variable rates and gave me more money than i should be able to get and I went under, then I think at least part of the blame is on the banks and those people should get help.
Sean M September 25, 2012 at 05:22 PM
Bob The problem is government backed loans via Fannie Mae and Freddie Mac. This caused banks to not do its homework when loaning money. The blame is on the ignorant Americans who do not understand money. I took a loan out in 2006. I took fixed because I saw what was coming. I did my homework. The blame is liberals. This notion of a right to own a home is pushed by liberal Democrats. They were the ones who passed the laws to make banks loan money to people who could not afford it. Republicans enabled it. Democrats started it.
Bob September 25, 2012 at 06:08 PM
Partly true, but many lenders hedged thier investments making one part of the corporation compete against the other. This hedging, made some lenders take on riskier investments so they could sell them as a bundle. I do not feel that owning a home is a right. And sadly, some people should never get a house because they cannot afford it. But, if a money lender pushes a risky investment without explaining the risks, then it is partly the lenders fault and they should share in that. Yes, maybe they are ignorant to the economics, but thats why they go to a lender. You are putting your trust in them as a professional, and they should be considering thier interests.
Sean M September 25, 2012 at 08:34 PM
In the real world, people go out to cheat. If there was fraud, that is another story. The real problem is government involvement. Let banks decide the economic standards for investing their money. Stop bailing out banks. Let them fail.

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