This is an interesting development on the mortgage financial front. The WSJ is reporting that over 4.5 million homeowners who were in some state of foreclosure during the past two years may be eligible for financial compensation. The compensation would come only after a review by the Office of the Comptroller of the Currency and the Federal Reserve, pertaining to the actions of the 14 largest banks and their foreclosure practices. Damages would be paid for harm ranging from fees to loss of a home. However, presumably if the bank engaged in fraud or other illegal activity to take the property, the homeowners may be entitled to much more.
The timing of this announcement is particularly interesting because it comes a day after the banks acknowledged that the total settlement for the robo signing fraud maybe $25 billion, up from $10 billion. However, this figure does not include damages that may be required pursuant to independent suits filed by Attorneys General from New York, Delaware, and most certainly other states not participating in the settlement.
If you believe you’ve been a victim of foreclosure fraud or unjust financial harm, you must petition for a review by April 30, 2012. A petition may be filed over the phone at 1-888-952-9105, or online at the website www.independentforeclosurereview.com.