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Checks hit the mail to foreclosed homeowners Friday

Thursday, April 11, 2013

The first wave of checks will head to homeowners who were foreclosed on in 2009 and 2010 starting Friday, April 12.

While payouts range from $300 to $125,000, most borrowers will receive only about $300. Those receiving $300 to $600 include nearly two million homeowners who applied for a loan modification but ended up in foreclosure anyway, and others whose mortgage servicers never considered them for a modification.

The biggest payments will go to homeowners who were foreclosed on even though they were not behind on payments and to military members who were supposed to be protected by the Servicemembers Civil Relief Act.

Borrowers whose foreclosures were finalized while participating in a trial loan modification will receive $25,000 or $50,000.

Payments are the result of the Independent Foreclosure Review agreement reached recently with 13 servicers and federal bank regulators (OCC and the Federal Reserve). Most of the 4.2 million checks will be mailed by the end of April. (Checks are valid for 90 days).
 
In most cases, homeowners who applied for an IFR review will receive double the payout of those who did not.

Consumers may still be eligible for other foreclosure prevention measures.

For help, contact a HUD-approved housing counselor.

Homeowners can verify they are covered by this agreement or update an address by calling Rust Consulting at 888-952-9105.

Complaints or problems should be directed to the Comptroller of the Currency (OCC) at (202) 649-6430.