Were you in foreclosure in 2009 or 2010? A settlement check could be in the mail

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?

9 comments Add your comment

StopTheStoooopid

April 9th, 2013
3:22 pm

My foreclosure was my fault and my decision. I wonder if that makes a difference? Regardless, I was never contacted by an agent.

scamwatcher

April 9th, 2013
7:47 pm

Remember what I said earlier about incompetent brass at Sun Trust destroying moral and running off good employees? Guess what? Another good one gone! Will they ever learn?

[...] Were you in foreclosure in 2009 or 2010? A settlement check could be in the mailAtlanta Journal Constitution (blog)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 … [...]

Patrick anthony Stanton

April 10th, 2013
4:41 pm

I was laid off from my job and called intgra bank of mt olivet ky’ to ask for reduction of payments in my time of crisis they said I had to talk to fderal housing authority they said they did not do that I said your president of usa is on tv telling you companies to cooperate with mortgagee holders they said sorry we don’t do that. I SAID I DONT KNOW HOW I CAN MAKE PAYMENTS THEY SENT me letter telling me I had twenty days to get out’ so I moved after I moved they called me one day and told me I could move back in for 400.00 month but they could make me move if they sold it I turned them down.A couple of my friends went to auction to try and buy it to help me out and it sold for 28000.00 more than I owed on it the bank bought it back Icould not understand this.KY. STATE GOVERNMENT HAD BOUGHT 572 ACRES BESIDE MY PROPERTY before my crisis and I felt like bank had purposes for buying property and I was a victim of some kind of larger scheme of things I bought propert from my mom and it broke my heart to see it go what should I do/

MANGLER

April 11th, 2013
11:13 am

Sentence structure is important if you want to make any sense at all Patrick.

Patrick anthony Stanton

April 11th, 2013
11:29 am

Sorry,this is my first time on computer.I have worked all my life with hands and back,never had time enough to sit down and learn.hopefully someone will understand enough to help with advice

Deandre Kilmartin

April 15th, 2013
6:59 pm

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Robbie

April 15th, 2013
7:42 pm

Patrick,
It may be that KY law requires the bank to pay you back any overage above the debt and the cost of the foreclosure. Ask your bank for an accounting of the $28,000 overage.

Teresa M.

April 16th, 2013
1:10 am

Clearly banks can get away with murder or at least break the law during the housing crisis, spend $2billion and 18months producing little results to help foreclosure victims, get the government to agree to a new approach and then start mailing out the payments under the National Foreclosure Modification Program.

What a joke when I opened my settlement check today to discover I had been paid only $2,000 for losing my home of 12 years.. After looking up the payment chart , I see I could have qualified for far more. the banks continue to screw up. And I’m not laughing ! Let the class action law suits to begin.