Foreclosure abuse: Deadline to file is January 18

Homeowner victims of foreclosure abuses can apply for review to receive up to $125,000. The deadline to request Independent Foreclosure Review is January 18.

The January 18, 2013 deadline is fast approaching for homeowners who lost their homes to foreclosure to file a claim. The anticipated average payment to eligible borrowers is $2000 per borrower.

In February, 49 state attorneys general and the federal government announced a historic joint state-federal settlement with the country’s five largest mortgage servicers: Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo.

The National Mortgage Settlement Administrator mailed Notice Letters and Claim Forms in late September through early October 2012 to those borrowers who lost their home due to foreclosure between January 1, 2008 and December 31, 2011 and whose loans were serviced by one of the five mortgage servicers that are parties to the settlement. The Michigan Attorney General’s office also sent a mailing during this same timeframe.

The mailings were sent to the last-known borrower address. Some affected borrowers may have moved and did not receive their letters, but can still file a claim.

Affected borrowers can now access the secure claim filing site where they can submit their Claim Form. They must have their personalized claimant ID number, which is located on the Notice Letter and Claim Form you received, to submit their Claim Form online. They can also mail their form in the postage paid envelop that was provided in the mailing.

Borrowers should not need to pay anyone to file their claim. If borrowers have questions or need help filing a claim, they may call the Settlement Administrator toll free at 1-866-430-8358.

For more information, see my news article posted on October 3 for details about examples of possible victims.

Michigan State University Extension provides free housing counseling at its Macomb, Lapeer, Ionia and Washtenaw County offices to surrounding areas. MSHDA certified Housing counselors are also available for counseling.

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