Class Action Settlement for Foreclosed Homes, Deadline Approaching
By: Monica Yantosh
Updated: January 4, 2013
The Department of Justice, on March 12, 2012, announced a settlement of $25 billion because of violations of state and federal laws.
According to the settlement, foreclosures were not properly filed. There was a 10 month investigation, beginning in October 2010.
The investigation found the fraud, and then, "The major mortgage servicing banks soon acknowledged that individuals had been signing thousands of foreclosure affidavits without reviewing the validity or accuracy of the sworn statements." That's according to a statement from Philip A. Lehman, Assistant Attorney General for the Consumer Protection Division of the North Carolina Department of Justice.
Lehman's statement also said "Several national banks then agreed to stop their foreclosure filings and sales until corrective action could be taken."
Of the $25 billion, $17 billion will be available to reduce mortgage principals for those affected.
The deadline to file for your place in the settlement is on January 18th. Your home would have had to be foreclosed on between January 1, 2008, and December 31, 2011.
The five lenders named in the settlement are Bank of America, JP Morgan Chase, Citigroup, Wells Fargo, and Ally Financial.
Lubbock Attorney Fernando Bustos said it's important to at least look at any class action lawsuits that may come your way, as some, could help you out.
There's more information on the settlement at this website, from National Mortgage Settlement.
According to the settlement, foreclosures were not properly filed. There was a 10 month investigation, beginning in October 2010.
The investigation found the fraud, and then, "The major mortgage servicing banks soon acknowledged that individuals had been signing thousands of foreclosure affidavits without reviewing the validity or accuracy of the sworn statements." That's according to a statement from Philip A. Lehman, Assistant Attorney General for the Consumer Protection Division of the North Carolina Department of Justice.
Lehman's statement also said "Several national banks then agreed to stop their foreclosure filings and sales until corrective action could be taken."
Of the $25 billion, $17 billion will be available to reduce mortgage principals for those affected.
The deadline to file for your place in the settlement is on January 18th. Your home would have had to be foreclosed on between January 1, 2008, and December 31, 2011.
The five lenders named in the settlement are Bank of America, JP Morgan Chase, Citigroup, Wells Fargo, and Ally Financial.
Lubbock Attorney Fernando Bustos said it's important to at least look at any class action lawsuits that may come your way, as some, could help you out.
There's more information on the settlement at this website, from National Mortgage Settlement.
Comments
Although the money will help to ease some of the pain from these foreclosures for us borrowers who experienced this, what about our credit reports? Will anyone figure out a way we can recover on our credit report? If in fact it has been determined that many of us were wrongfully foreclosed upon, then shouldn't our credit reports be ex sponged as well. To [censored] that could certainly stimulate the economy and give [censored] the ability to borrowers who are willing and have the option under the stricter guidelines to purchase again. All of this without all of the questions about our past mortgage issue that may not have been our fault. I'm just sayin....
Cherie C.
April 17, 2013 at 5:46 pm
Although the money will help to ease some of the pain from these foreclosures for us borrowers who experienced this, what about our credit reports? Will anyone figure out a way we can recover on our credit report? If in fact it has been determined that many of us were wrongfully foreclosed upon, then shouldn't our credit reports be ex sponged as well. To [censored] that could certainly stimulate the economy and give [censored] the ability to borrowers who are willing and have the option under the stricter guidelines to purchase again. All of this without all of the questions about our past mortgage issue that may not have been our fault. I'm just sayin....
Cherie C.
April 17, 2013 at 11:42 am
