Large
mortgage servicers have been ordered by federal bank regulators to identify
borrowers who may have been harmed by errors and improper practices in
foreclosure or threatened foreclosure and to review each of their mortgage
files for financial harm.
If you
believe that you have been wronged in a foreclosure or threatened foreclosure
during 2009 or 2010, you are eligible to request a free, independent review
of your mortgage file through the Independent Foreclosure Review. The deadline for requesting a review is December 31,
2012.
If the review finds that
financial harm has occurred, you may receive compensation or other relief. You give up nothing by requesting a review
and do not waive any rights by accepting compensation through this program.
The deadline for requesting an Independent Foreclosure Review is December 31, 2012.
Who is Eligible to Request a Review?
Borrowers do not need to have lost their home to participate but must have been part of a foreclosure action on their primary residence in 2009 or 2010 by one of the following companies:
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· America’s Servicing Co. · Aurora Loan Services · BAC Home Loans Servicing · Bank of America · Beneficial · Chase · Citibank · CitiFinancial · CitiMortgage · Countrywide |
· EMC · EverBank/EverHome Mortgage Company · Financial Freedom · GMAC Mortgage · HFC · HSBC · IndyMac Mortgage Services · MetLife Bank · National City Mortgage |
· PNC Mortgage · Sovereign Bank · SunTrust Mortgage · U.S. Bank · Wachovia Mortgage · Washington Mutual (WaMu) · Wells Fargo Bank, N.A. · Wilshire Credit Corporation |
How Can I Request a Review?
Borrowers may check their eligibility and request a review at independentforeclosurereview.com or may call 1-888-952-9105 to request a form to be completed and returned by mail. Reviews are free. The deadline for requesting a review is December 31, 2012.
What Kind of Errors Result in Financial Harm?
Examples include, but are not limited to:
- Foreclosing on a borrower not in default;
- Failing to convert a qualified borrower to a permanent modification after successfully completing a written trial plan;
- Foreclosing prior to expiration of a written payment plan, while the borrower was meeting the terms of that plan;
- Rejecting a loan modification application that should have been approved;
- Charging a higher interest rate in a loan modification than should have been charged;
- Failing to provide proper notification during foreclosure; or
- Foreclosing in violation of the Servicemembers Civil Relief Act or federal bankruptcy laws.
- Note that you
do not need to have lost your home to foreclosure to be eligible.
What Could I Get?
Remediation may include suspending a pending foreclosure or
rescinding a completed foreclosure, reimbursing improper fees plus interest,
providing a loan modification, correcting credit reports and other errors in
the borrowers’ records or providing cash payments to compensate for financial harm.
Cash payments can range from small amounts up to $125,000 plus equity in the most severe cases. Note that not all foreclosures involved errors and not all errors will lead to compensation. However, you give up nothing by requesting a review and do not waive any rights by accepting compensation through this program.
How Will I Know if my Request for Review has been Received?
An acknowledgement letter will be sent within seven days after your request is recieved. If you do not receive a letter acknowledging receipt of your review, call 1-888-952-9105 to inquire about the status of your review.
Don’t Fall for Scams by Paying for a Review, Help Is Available
If you need free help to complete the request for review form, contact a HUD-approved Housing Counseling Agency. Information about North Carolina HUD-approved agencies that can provide free assistance can be found here or by calling 1-888-995-HOPE (4673).
For more information about the Independent Foreclosure Review visit:
- The Independent Foreclosure Review (independentforeclosurereview.com)
- Office of the Comptroller of the Currency, a bureau of the U.S. Department of the Treasury (www.occ.gov/independentforeclosurereview)
- Board of Governors of the Federal Reserve System (http://www.federalreserve.gov/consumerinfo/independent-foreclosure-review.htm)
- Other Foreclosure Assistance
A variety of assistance programs can help homeowners trying to prevent foreclosures or to receive compensation for problems that occurred in the foreclosure process. Other programs include: - The National Mortgage Settlement – The National Mortgage Settlement may provide relief or compensation for distressed homeowners through a settlement struck by the federal government, 49 state attorneys generals and five large mortgage companies. To learn more about the settlement visit www.ncdoj.gov/mortgagesettlement.aspx or www.nationalmortgagesettlement.com.
- Making Home Affordable – Since 2009, the Making Home Affordable program has helped provide loan modifications and refinancing options to homeowners struggling to keep their homes. For more information about the Making Home Affordable program visit www.makinghomeaffordable.gov.
