Homeowners May Receive Cash When Dealt With Foreclosure Abuses

In a news by the CNNMoney in New York, homeowners who had been victim of foreclosure abuse from years 2009-2012 could receive up to $125,000 cash or more when such abuse is verified to be true as lenders had committed so. This is in regard to the Independent Foreclosure Review that has been overseen by two other government agencies. 

The OCC (Office of the Comptroller of the Currency) along with the Federal Reserve had laid out a framework in which several listed borrowers will be receiving cash compensation depending on the range of foreclosure abuses and errors or mistakes that occurred during the period of time as a result of what they call as “robo-signing”.

The Bank of America, Chase (JPM), Citibank, Metlife Bank, PNC Mortgage and Wells Fargo had agreed to hire independent consultants to look after and review as well investigate such foreclosure acts of abuse and give financial aid for those who had mistakenly been foreclosed and suffered from it. This was also a part of the enforcement action of the said banks and agencies since April.

The review, however, was clarified to be separate from the $26 billion foreclosure abuse settlement that includes the whole nation’s leading lenders, plus 49 state attorneys including DC. On the other hand, this case won’t have huge direct effect to the current state of the housing market and mortgage schooling and mortgage rates in the US.