Independent Foreclosure Review – New Sheriff in Town

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There’s a new sheriff in town. Well, technically, it’s not a new sheriff. But there’s a new consent order coming from the very, very top as a result of possible improper foreclosure practices.

Here’s the long and short of it: As part of the settlement associated with the robo-signing debacle of 2010 (title my own), fourteen mortgage servicers and their affiliates are identifying customers who were part of a foreclosure action on their primary residence during the period of January 1, 2009 to December 31, 2010.

These 14 mortgage servicers have begun to send out letters to 4.3 million potential victims of robo-signing. These letters will provide homeowners the opportunity to request an independent review of their foreclosure process (a.k.a. Independent Foreclosure Review). If the review finds that financial injury occurred as a result of errors, misrepresentations, or other deficiencies in the servicer’s foreclosure process, the customer may receive compensation or another remedy.

Here are some FAQs that may help you wrap your head around this latest news impacting the wacky world of distressed properties:

What foreclosure actions are part of the Independent Foreclosure Review?

  • The property was sold due to a foreclosure judgment.
  • The mortgage loan was referred into the foreclosure process but was removed from the process because payments were brought up-to-date or the borrower entered a payment plan or modification program.
  • The mortgage loan was referred into the foreclosure process, but the home was sold or the borrower participated in a short sale or chose a deed-in-lieu or other program to avoid foreclosure.
  • The mortgage loan was referred into the foreclosure process and remains delinquent but the foreclosure sale has not yet taken place.

What are the eligibility criteria to receive compensation or another remedy?

  • Your mortgage loan was serviced by one of the participating mortgage servicers.
  • Your mortgage loan was active in the foreclosure process between January 1, 2009 and December 31, 2010.
  • The property was your primary residence.

Who are the participating servicers? America’s Servicing Company, Aurora Loan Services, Bank of America, Beneficial, Chase, Citibank, CitiFinancial, CitiMortgage, Countrywide, EMC, EverBank/EverHome Mortgage Company, GMAC Mortgage, HFC, HSBC, IndyMac Mortgage Services, MetLife Bank, National City Mortgage, PNC Mortgage, Sovereign Bank, SunTrust Mortgage, U.S. Bank, Wachovia Mortgage, Washington Mutual and Wells Fargo Bank, N.A.

How does my mortgage loan get reviewed as part of the Independent Foreclosure Review? Homeowners that meet the initial eligibility criteria will be mailed notification letters with an enclosed Request for Review Form before the end of 2011. (Homeowners must submit a Request for Review Form postmarked no later than April 30, 2012.)

How will the bank know where to find me (to send me my letter) if I have already lost my home to foreclosure? Homeowners meeting the initial eligibility criteria will be mailed notification letters with an enclosed Request for Review Form before the end of 2011. If you received the notification letter, you can send in your Request for Review Form in the prepaid envelope provided, postmarked no later than April 30, 2012. You can also call 1-888-952-9105.

Remember that this new settlement is just that—a settlement. This Independent Foreclosure Review does not stop any foreclosure proceedings currently scheduled, and this is not a moratorium on future foreclosure activity.

So, if you have any clients who may have heard bits and pieces of this information (or bits and pieces of information about the new HARP program), make sure to help them understand the scope of the Independent Foreclosure Review.

(photo credit)

Comments

  1. Allie

    Yeah… Homeowner are supposed to count on the lender to send a request for review form???? Don’t hold ur breath! How can I request a request for review form? HAHAHAHA

  2. sue

    When you were forced into a short sale due to unemployment and you didn’t qualify for the home modification from the government you still qualify. Don’t think your case won’t get anything, try because when you’ve lost everything it’s worth it to see where for once government is on your side and you can fight the hell they put you through.

    • richard wilson

      Sue
      What happened with your review my situation is like yours plus i was a victim of Robo signing. how did it go for you and what did you put on your review. Just curious
      Richard

      • TED

        I received a check for $500. I lost over 100k plus when this happened!
        I got cheated again! Is it all a scam!
        What is a $500 bandage suppose to do? Make us feel better?

        I don’t… You?

        I sent in my mortgage payment when my modification came in, ahead of my deadline. They sent me back my check with a letter stating my account has been closed!

        Im looking into a law suit that i thought this settlement that says it isn’t a settlement would fix!

        Still confused with this whole thing!

  3. Barbara Lamar

    Citi Mortgage sure screwed me over good. I was in the middle of what I believed to be a modification to help me out,but after I made my trial payments, they tell me I can’t afford the property .And I will be forceably removed by law,from my property ,if I don’t vacate on a given date.I tried for a short sale to get a Reverse Mortgage,but was told by Citi Mortgage ,that if I paid them $16,000.00 in back interest & taxes ,etc.that they would give me a modification and I could continue to live there.If I had $16000.00 I wouldn’t have needed a modification.Well I’m out ,they sold my house for the $16000.00 they wanted from me .I got screwed & didn’t even get kissed.

  4. I had them all started with countrywide, ended with citi morgage, wells fargo in the middle while sallie may was taking out loans in my name at an acess of 7518.00 when I only when to school for one quarter and withdrew

  5. Dick Huber

    Had the same as barb lamar only with BofA. Was told in october 2009 that we were now in a new plan/payment and paid for 5 months only to find out it was never approved. Each month they took the new payment and applied to the old payment which wasn’t enough. Had foreclosure sent 4 times and had to get their atty to stop it. They finally proceeded in June 10 and forced us into Chapter 7 bk to get the foreclosure stopped in time and try and save the place.

  6. charleen

    Got the results today…not-eligible. Auroraloanservices loans says the HAMP program that they neglected to seal the deal on…or the second HAMP modification…or the standard modification, were not part of a foreclosure process? THANKS OCC for changing the rules..only legalities…
    Who is apart of step 3a..failure to convert written trial period?, or did you change that too? It seems that the banks have fun messing with the public with false hope…shame on them!!

  7. i am a victim of citi, they are rude ,cold and heartless, does not honor their word only wants to rob and be big , i asked the to pay my taxes once , my taxes on my house were only 388.00 on my house by me being disabled the other half is paided by the state, and they said they would put it at the end of my note, not so they charged me over 5,000 dollars for paying my taxes and they claimed in 2008 they paided my taxes again and charged me another 5,000 dollars ihave proof that this is a lie and i was forced on bankruptcy to save my home , they will not modify my loan i have been paying 11% interest since 1996 when i took out my second mortgage with another and citi bought my mortgage so they tells me i am stuck with them i am struggling every month paying the bankruptcy court 975.00 a month from my disability check , it may not seem like much to some of you but its a lot when you don,t get much to live out of , citi is a nightmare in my life. they will not modify my loan .

    • pam

      we also go thru citi and they started and stopped our modification 3 times with no reason as to why we pain what they told us to pay on time and they still forclosed,we were forced to file bankruptcy to save our property so they not only put us thru hell for over 1.5 years but ruined our credit as well.

  8. i am a victim of citi, they are rude ,cold and heartless, does not honor their word only wants to rob and be big , i asked the to pay my taxes once , my taxes on my house were only 388.00 on my house by me being disabled the other half is paided by the state, and they said they would put it at the end of my note, not so they charged me over 5,000 dollars for paying my taxes and they claimed in 2008 they paided my taxes again and charged me another 5,000 dollars ihave proof that this is a lie and i was forced on bankruptcy to save my home , they will not modify my loan i have been paying 11% interest since 1996 when i took out my second mortgage with another and citi bought my mortgage so they tells me i am stuck with them i am struggling every month paying the bankruptcy court 975.00 a month from my disability check , it may not seem like much to some of you but its a lot when you don,t get much to live out of , citi is a nightmare in my life. they will not modify my loan .

  9. pam

    we also go thru citi and we went with the modification sent all paperwork which they lost or stopped the process 3 times and we kept having to fax them everything all over again and no one there knew why or what happened. paid what they told us to called them almost daily and documented each call with servicers id number and they still forecloesed on us we had to file bankruptcy to save our home so they not only put us thru hell and back but also ruined our credit they are a joke of a company!

  10. TED Flisk

    These people should be in jail. All of us here are victims to theft!

    Even with Rust handling most settlement cases, (passing the buck).
    Oh, and I love this one, “this decesion is final, you cannot contest!”
    Well Rust, you missed a big part in my case as well as others i’m sure.
    I’m not satisfied with your decision. Thats final…

  11. ken gastineau

    When I spoke to O.C.C. in Feb. 2013, they informed me that two settlement had been reached, one for 55 billion dollars and another for 45 billion dollars. Now I understand due to some back room agreement the award has been gutted of 75 billion dollars. The President, the O.C.C., the banks, consultants, and Treasury should all be charged with. FRAUD=when you agree on one thing and then you deliver another

  12. Vicky McCann

    I received the postcard stating that I was approved for compensation in March, 2013, but as of yet, have not received anything! Has anyone else failed to receive their compensation checks, small though they probably are? Just wondering because you cannot find out if they have been mailed yet or not.

    • Melissa Zavala

      Vicky: I think you should call Rust Consulting. I believe that the final checks went out already or are going out in the next week or so.

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