As of last week, borrowers had cashed nearly 2.9 million checks from a settlement paid out by 13 of the nation’s largest lenders for various foreclosure mistakes that had been made over the last few years. The Office of Comptroller of the Currency said that, so far, $2.5 billion worth of checks had been cleared but that’s still only about two-thirds of the $3.4 billion in checks issued to borrowers.
Home owners who were in foreclosure in 2009 and 2010 and who had their loans serviced by one of the 13 lenders are eligible for compensation under the foreclosure agreement. The settlement amounts range from $300 to $125,000, depending on the circumstance behind the processing of the borrower’s foreclosure. Some borrowers lost their homes due to errors, while others faced financial losses from the process.
Some of the first round of checks, mailed in April, were returned for insufficient funds. In May, The New York Times reported that a second round of nearly 100,000 checks were issued for the wrong amounts. The remaining borrowers will receive checks from the settlement later this summer, according to the Office of Comptroller of the Currency.
The author of this article is: realtormag.realtor.org
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