Were you in foreclosure in 2009 or 2010?
If so, a check could be in the mail for you, under a settlement reached between top banks and U.S. regulators earlier this year.
The $3.6 billion cash settlement is to compensate 4.2 million borrowers who were wrongfully foreclosed on. The payments will be split among borrowers who were in foreclosure in 2009 or 2010 and had home loans serviced by one of 13 banks, including Bank of America, JPMorgan and Wells Fargo.
Cash payouts will range from between $300 and $125,000, according to regulators. Payments will begin going out on Friday, the Federal Reserve announced on Tuesday.
The cash payments are supposed to go to borrowers who were at any stage of the foreclosure process during the height of the housing crisis.
The largest numbers of borrowers will receive between $300 and $600. Borrowers who were foreclosed on while they were on active duty in the military would receive the top amount – $125,000 each. About 50 borrowers who were not in default but had foreclosures completed on their homes also will receive the top $125,000 payout, regulators said.
About 4.2 million borrowers are eligible to receive the payments, and checks to 1.4 million of them will be sent out on Friday, regulators said.
If you’re eligible, you don’t need to take action, according to the feds. The banks will slot borrowers into one of 11 categories of potential harm. Regulators will decide the payout for each category.
Borrowers should have been contacted by a company working as a paying agent by the end of March, regulators said.
Are you a borrower who was wrongfully foreclosed on? If not, what do you think of this settlement?