The Settlement Replaces The Failed Independent Foreclosure Review
Many homeowners who were the victim of questionable practices by the banks and servicers will soon see settlement checks. As part of the settlement by federal regulators 13 lenders will soon shell out $3.6 billion to more than four million distressed homeowners who found their homes in foreclosure proceedings in 2009 and 2010.
According to regulators most of the homeowners will receive $300. That amount won’t go very far here in the Bay Area or anywhere else for that matter. The maximum amount of $125,000 will go to would go to t 1,135 borrowers who had their homes foreclosed on while they were serving in the military or were current on their payments.
This settlement replaces the failed Independent Foreclosure Review that flopped both with homeowners and independent researchers.
Checks To Be Sent Shortly
The checks will be sent in various stages. The first stage totaling $1.2 billion will be sent today, with 90% of the payments to be made by the end of April, according to the Federal Reserve and the Office of the Comptroller of the Currency, the Treasury Department agency that regulates national banks.
According to the Fed and the OCC, the second stage of payments, to be made after borrowers provide additional information, will go out in mid-July, with the recipients scheduled to receive about 4.2 million.