U.S. Mortgage Servicers to Pay Up to $125k for Mishandling Foreclosures

by San Antonio Attorney

JPMorgan Chase & Co., Citigroup Inc. and other banks in the United States would pay up to $125,000 to every customer who had been greatly affected by wrongful handling of foreclosures by the banks from 2009 to 2010, based on a removal plan unveiled by the government regulators.

In a statement of Thomas Curry, the United States Comptroller of the Currency, he pointed out that although the progress has been great since the administration action against big mortgage lenders was taken a year ago, there are still a lot of things that have to be done. The plan assists those who want a no cost review to find out how they can get paid for the financial damage that were inflicted to them.

Last year, some of the biggest banks were ordered by the federal regulators to overhaul their foreclosure procedures and retain the services of third party experts to determine whether or not their procedures had badly injured consumers. They were also ordered to make lump-sum payments somewhere between $500 and $125,000 to every case involved with poor foreclosure practices, according to the federal regulators.

Apart from lump-sum pay outs, mortgage loan servicers who wrongly managed foreclosures may need to declare the contracts as void. In addition, they may have to adjust loans or rectify credit reports, as outlined by industry guidance released by the Federal Reserve and the OCC.

The regulators have sent letters to more than 4 million people informing them that they can request for reviews. Out of all the prospective claimants, there were already 193,630 borrowers who had made the request for review in May, based on a report published by the regulators. The third party consultants selected an additional 144,817 cases to evaluate. Around 12,000 files have been subject to examination so far.

 

-  Many homeowners fight foreclosure by retaining the services of lawyers. An experienced San Antonio Real Estate Attorney can help you obtain positive results.

 

 

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