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Millions Eligible for Foreclosure Reviews

Published
November 4, 2011
Jamie Pietras

Jamie Pietras's work has appeared in publications including New York magazine, Time Out New York, and The Writer. A graduate of Columbia University’s MFA program in nonfiction writing, he has also worked in e-learning, contributed to various trade publications, and written and edited young adult nonfiction.

This week, federal bank regulators rolled out details of a program intended to help homeowners whose foreclosures were processed based on erroneous paperwork.

Mortgage servicers have already begun sending mailings to borrowers, explaining how they can request for an independent consultant to review their case “if they believe they suffered financial injury as a result of errors, misrepresentations, or other deficiencies in foreclosure proceedings,” according to The Office of the Comptroller of the Currency.  To be eligible, borrowers must have had loans in the process of foreclosure between Jan. 1, 2009, and Dec. 31, 2010. The Washington Post reports an estimated 4 million borrowers are entitled to ask for a review.

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If the consultant determines that mistakes or misrepresentations were made, homeowners can receive compensation. Situations that might warrant redress include “unwarranted or miscalculated fees charged to borrowers, a foreclosure that happened while a borrower was already in bankruptcy protection, or a property that underwent a foreclosure sale even as the borrower was awaiting word on a loan modification from the servicer,” the Post reports.

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The independent review program is the result of an enforcement action leveled by the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Office of Thrift Supervision against 14 large residential mortgage servicers and two third-party vendors back in April. Mailings will continue until year’s end, and review requests must be received by April 30, 2012, according to the OCC. For additional information, visit www.IndependentForeclosureReview.com.

[Related article: More Help for Underwater Homeowners]

Image: © Olivier Le Queinec | Dreamstime.com

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