Checks to be sent to some foreclosed homeowners this week


Local homeowners in any stage of foreclosure in 2009 and 2010 will receive checks in the mail beginning Friday, government regulators announced Tuesday.

More than 4.2 million affected borrowers nationwide stand to receive some cash compensation. Payments range from $300 to $125,000, said the Federal Reserve Board and U.S. Office of the Comptroller of the Currency.

Most borrowers covered under the settlement agreement are slated to receive a $300 check. Payments will be made in waves through mid-July, the federal agencies said.

Not everybody eligible lost their home, said Bryan Hubbard, Comptroller spokesman.

The minimum $300 payment goes to people for potential errors such as their home going into foreclosure even though the bank approved a loan modification. People receiving the maximum payment of $125,000 include those with a foreclosure completed on their home, but their mortgage was not in default.

In an amended federal settlement agreement reached this year — a second, separate agreement from 2012’s National Mortgage Settlement — 13 mortgage service firms are required to pay $9.3 billion to resolve faulty foreclosure processes.

The agreement replaced orders made in 2011 for mortgage servicers to do case-by-case reviews of foreclosures — known as the Independent Foreclosure Review. Instead, servicers must compensate borrowers they have already identified directly, the Federal Reserve and Comptroller said.

“In the 2011 enforcement action we determined the eligibility and we said all the borrowers in any stage of foreclosure in 2009 or 2010 are eligible in the Independent Foreclosure Review,” Hubbard said. “That entire universe is getting paid something in the settlement.”

People who filled out the request for review will receive more money than people who didn’t.

On March 18 people eligible were sent postcard notices about payments they will receive from the agency hired to handle payments — Rust Consulting Inc.



Reader Comments ...


Next Up in Community News

Goodbye, Georgia Dome – thanks for the memories!
Goodbye, Georgia Dome – thanks for the memories!

As we say goodbye to the Georgia Dome after a quarter-century, it’s only fitting we look back at some it its most memorable moments. The Atlanta landmark was demolished at 7:30 a.m. Monday. The last event was held in the 25-year-old building in March, and the new Mercedes-Benz Stadium opened next door in August. >> Head to WSBTV...
LIVE: Implosion of the Georgia Dome
LIVE: Implosion of the Georgia Dome

Watch live as crews demolish the Georgia Dome in Atlanta.
Lena Dunham backtracks defense of 'Girls' producer accused of raping teen
Lena Dunham backtracks defense of 'Girls' producer accused of raping teen

Lena Dunham did a major backtrack following backlash from her decision to defend a “Girls” producer who was recently accused of raping a teenage girl. Actress Aurora Perrineau filed a police report against producer Murray Miller, saying that he raped her in 2012 when she was 17 and he was 35 years old, according to The Wrap...
Trump again lashes out at UCLA basketball dad LaVar Ball: 'Very ungrateful!'
Trump again lashes out at UCLA basketball dad LaVar Ball: 'Very ungrateful!'

President Donald Trump continued his Twitter roasting of UCLA basketball dad and Big Baller Brand mogul LaVar Ball on Sunday evening, calling him “very ungrateful” for not thanking him for getting his son out of trouble. “Shoplifting is a very big deal in China, as it should be (5-10 years in jail), but not to father LaVar. Should...
Raiders' Marshawn Lynch sits for U.S. national anthem, stands for Mexico's
Raiders' Marshawn Lynch sits for U.S. national anthem, stands for Mexico's

Star NFL running back Marshawn Lynch of the Oakland Raiders was spotted sitting on the sidelines as the U.S. national anthem played before a Sunday afternoon game in Mexico against the New England Patriots. >> Read more trending news Lynch appeared to take his demonstration a step further by standing during the Mexican national anthem...
More Stories