Foreclosed in 2009 or 2010? Money may be coming your wayby Tim Manni
Did you provide the proper paperwork for a modification but were still denied?
Were you a victim of the “robo-signing” scandal?
If so, you may qualify for restitution when millions of foreclosure cases are soon reviewed.
According to our friends Nick Timiraos and Ruth Simon at the Wall Street Journal:
Millions of current and former homeowners will have a chance to get their foreclosure cases examined to determine whether they should be compensated for banks’ mistakes, under a wide-ranging review being planned by federal regulators.
While no official review process has been reveal up to this point, federal regulators are expected to release details in the coming weeks. As it stands now, borrowers who entered into some stage of foreclosure from 2009-2010 are eligible. Estimates peg that 4.5 million former homeowners might qualify for this review.
Borrowers determined to have sustained “financial injury” will be eligible for compensation.
Private third-party firms–which were hired earlier this year–will address former homeowners on a case-by-case basis. While no monetary estimates have been made on how much former homeowners may receive, the Journal does report that no foreclosures are expected to be overturned.
How and when
“How and when will this process begin?”
The review process is expected to begin with a public campaign that will include its own website and toll-free number.
Eligible borrowers will have to request their own review before a set deadline–expected to be sometime before the end of March 2012. “It hasn’t been determined whether borrowers that accept restitution would have to agree to surrender related legal claims,” according to Timiraos and Simon.
We’ll be following this story closely and updating everyone on any new or emerging details.