WASHINGTON, D.C. – October 2, 2012 – (RealEstateRama) — The Department of Insurance, Securities and Banking said 1,475 local borrowers who lost their homes to foreclosure between 2008 and 2011 may be eligible for restitution and will receive claim forms in the mail through early October.
The eligible homeowners had mortgages serviced by the five largest mortgage-servicers: Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo. The servicers agreed in April to a $25 billion settlement with the federal government and the attorneys general of 49 states and the District over foreclosure abuses such as “robo-signing” or not processing foreclosures thoroughly and carefully. The authorities earmarked $1.5 billion to partially repay 2 million homeowners.
“This settlement won’t fully compensate homeowners affected by these institutions in the District,” said William P. White, commissioner of the Department of Insurance, Securities and Banking. “But we encourage eligible homeowners to make sure they receive their portion. The settlement also doesn’t preclude borrowers from continuing other legal claims, either. Losing a home is a traumatic experience, and our sympathies are with those who lost their homes through the neglect of the companies’ practices.”
Mailings to eligible borrowers began last week and will continue through October 12, 2012. The mailing includes a claim form, instructions and answers to frequently asked questions. The department urges people to complete the forms as soon as possible. The deadline is January 18, 2013.
The one-page claim forms are simple to complete. However, borrowers who have questions or need help can contact the settlement administrator toll-free at (866) 430-8358 or send questions by email to ">. Borrowers who believe they may qualify for a payment, but did not receive a notice because they have moved, should also contact the settlement administrator.
Finally, the department warns people not to fall prey to scams: eligible borrowers do not need to pay anyone to help file their claim. Don’t provide personal information to someone calling or emailing you claiming they can provide assistance. If you are contacted, notify the Department of Insurance, Securities and Banking by phone at (202) 727-8000.
For more information about eligibility and filing a claim:
Call toll-free: (866) 430-8358 (hearing impaired: (866) 494-8281). The line is staffed Monday through Friday from (7 am to 7 pm Central).