Foreclosure victims to receive checks
The 4.2 million homeowners who were in foreclosure in 2009 and 2010 will get payments ranging from $300 to $125,000. Among those are 1,082 military members who wrongly lost their homes.
Compensation checks will start going out this week to the 4.2 million U.S. homeowners who were in foreclosure in 2009 or 2010.
Payments will range from $300 to $125,000, and 80% of borrowers will receive $1,000 or less. The 438,538 homeowners who had applied for reviews will receive double payments in some cases.
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The largest payments will go to 1,082 U.S. military members who were wrongly foreclosed on in violation of Servicemembers Civil Relief Act and 53 homeowners who lost their homes to foreclosure despite not being in default. An additional 116 military members and 37 borrowers who were not in default and had their foreclosures rescinded will get $15,000. Some will receive additional compensation for lost equity.
A total of 5,838 borrowers who lost their homes to foreclosure while they were protected by bankruptcy proceedings will get $31,250 each, and 1,597 borrowers who were foreclosed on while making payments on modified mortgages will get $25,000 each.
Homeowners whose modification requests were denied – a total of 872,546 borrowers – will get $1,000 each, or $2,000 if they had applied for reviews. Borrowers who never got a decision on their modification request will get $400. Those whose servicers did not engage with them will receive $300, as will about 600,000 borrowers who were not put into any of the other categories.
The schedule of payments outlines how many borrowers will receive each type of payment. Questions are answered here, but most borrowers won’t know how much they’ll receive until they get their checks. Checks will be sent through mid-July.
The payments are being handled by Rust Consulting, which has sent postcards to affected homeowners. If you did not receive a postcard and your home was in foreclosure during that time, you can call 1-888-952-9105 to make sure the company has your correct address. The foreclosure does not have to have been completed.
Consumer advocates have argued that ending the independent foreclosure review process means that the full extent of wrongdoing by loan servicers will never be known. Plus, they say, the compensation for homeowners who were unfairly denied loan modifications or who lost homes should have been much greater.
"This is cold comfort for many folks who were harmed, especially those who qualified for modifications but didn't get them, and then lost their homes," Alys Cohen, staff attorney at the National Consumer Law Center In Washington, told The Wall Street Journal.
Guess What,ole banker joe was not on the up & up now was he.But you
took what he had to offer didn't you.Forgot Economics 101 did you.
Ok...I have been in this business for over 10 years...first 5 years i sold these junk loans primarily to FANNIE/FREDDIE...then I went and worked on this FC review where this settlement came from...ever wonder why nobody went to jail? Fraud aside the banks and Wall Street did exactly what the Federal Govt wanted them to to...the Federal Govt set up the game, regulated the game, and now is settling the game...Most of you people are pounding on the wrong table by looking at the Banks and Wall Street...you need to look at your politicians...Where was the OCC? Why did the govt bailout these banks and nobody is in jail? The Govt gave a credit rating agencies a license to rate instruments? The only rating agency getting sued is the one who downgraded the US govt debt.....people need to understand how FANNIE & FREDDIE work and really understand this game before they just go along with the media tag lines about how the banks did this to you...oh and never mind personal responsibility in this whole mess...i guess that is a thing of the past. Oh and the reason why FANNIE & FREDDIE exist is because people do not want to hear anything about 20% down pmts...they want the easy way in and the politicians use you people for votes. Of course there was fraud and shaddy **** done by Wall Street but who regulates these people and buys MOST of the MBS products from Wall Street...FANNIE / FREDDIE does. Who created the subprime loans? The govt did with CRA and both the Dems and Reps are guilty of this **** (I think the Dems more but the Reps stood there the whole time as well). The politicians want you to put your anger on Wall Street and the banks, which is fine but the real player in the house is that politician and the US govt…that is where we need to start and that is why nobody is in jail (MOST of this stuff that was done, was NOT fraud, Wall Street just played the game and did what they are supposed to do = make $$).
The fact that we hear the phrase “protect property values” so often just confirms that the housing market is both dysfunctional and irrational. While cars depreciate in value, a properly priced home that is kept up should only increase in value at most at the rate of inflation. All the people struggling against eviction would be better served by just walking away. You need to think about saving for retirement rather than flushing any more money down the 30-yr mortgage toilet. You should have the right to live in an affordable home. Housing is a human right. The trouble is affordable homes have been unjustly zoned out. That is an unconscionable violation against your constitutional inalienable right to life, liberty and the pursuit of happiness. This is where the fight lies. This is what needs to be corrected and sooner rather than later.
End exclusionary zoning and there never will be another mortgage crisis again. End exclusionary zoning and you'll be able to buy a house as easily and cheaply as you buy a car. It's really that simple. The housing market is not free so homes are not accurately priced. I went from paying $3,720/yr in lot rent to a mobile home park to paying $662/yr in property taxes once I was allowed to place my singlewide on a lot and pay property taxes like everyone else. I lived at Little Valley Estates near 8 Mile & Middlebelt (near Detroit). I was paying $310/mo in lot rent for a 26 ft by 60 ft lot. That extrapolates to $8,656/acre/month. After I lost my job at 59 in Oct 2008 I just retired (didn't even apply for unemployment). I was able to retire because I paid off my singlewide in less than 2 yrs. So I didn't flush a lot of money down the 30-yr mortgage toilet. If I had borrowed say $100K at 5% and paid it back over 30 yrs then I would have had to pay back $193K. My lifetime income was only $699K.
I lived in apartments for 20 yrs before buying my singlewide in Aug of 1991. By the time I moved my singlewide in May 2009 I had paid over $55K in lot rent over 18 yrs. I estimate that I could've saved about $45K if I just would've been allowed to place my singlewide on a lot and pay property taxes just like everyone else. But Farmington Hills, MI says your home has to be at least 24 ft wide and conform to existing housing. My singlewide was only 14 ft wide. I would've had to move 167 miles further north if I wanted to stay in Mi. Instead I moved my singlewide 300 miles south to a warmer climate about 55 miles east of Cincinnati.
We have a right to life, liberty and the pursuit of happiness. In order to have life you need the necessities of life such as shelter. You should be free to choose that shelter. So the president is derelict in his duty to protect and defend the constitution. But he's just another Pontius Pilate politician. Pilate knew Jesus was innocent but when the crowd yelled 'Crucify Him' then that's what the crowd got. Everyone knows exclusionary zoning is wrong. I'd like the crowd, including Occupy etc, to stop supporting exclusionary zoning. Aren't you tired of being sheared of your wealth like sheep? At least I was able to move my home. I didn't have to leave it behind for someone to tear it down.
If you guys and gals think you have it rough let me tell you the hoops I had to go through to borrow only 30,000 dollars for a mortage at a local savings and loan in 1979. The S and L required 20% down payment. Said payment must come from a required savings account. At least 2 years of steady employment with a letter from your employer about your contuined prospects of working. A house aprasial, credit score of at least 700 etc. Much harder than today.
The bankers need to go to jail for their misdeeds.
busdriver...sure banks lost money on mortgages that are underwater. I think you are thinking they are still profitable...which they are.
Everyone lost, except some very big hedge managers. I seem to recall the top 10 in 2009 earned like 35 billion dollars (not the hedge company, the managers themselves).
KenCal....wrongfully foreclosed on does not meaning stealing. Painting pictures with words does not mean it is true. While I am not a fan of big banks, I don't find overally broad generalization useful, and I certainly know of individuals who were abuse with their loans... you can look up abuses on both sides of the equation if you care to.
I have spent the last 25 years paying off my Mortgage, paying off Student Loans, Paying my Medical bills and Paying Auto loant. I must be a complete Idiot!
It never occurred to me, that I could just stop paying, then ask for a check for all my Trouble...
Ah those were the bad old days where the people got shafted from all sides and no one cared a lick, now they finally are getting some compensation that will nowhere near make up for the misery the crooks brought upon they and their families.
Almost as bad as being sent to prison for something you never did and then being released after years behind bars.with a small check and a "i'm sorry".