If you’ve been pushed out of your home because of a foreclosure, you’ve got an extended opportunity to have the process reviewed for any errors that may have occurred.
After widespread complaints by consumer advocates and borrowers about deceitful and improper practices, federal regulators required 14 large residential mortgage servicers to retain independent consultants to provide an unbiased review of their foreclosure actions. Initially, people had until the end of July to request this review.
But now the Comptroller of the Currency and the Federal Reserve have pushed the deadline back to Dec. 31. If your primary residence was involved in a foreclosure process between Jan. 1, 2009, and Dec. 31, 2010, you may qualify for action.
This really is your chance for a no-lose situation. If consultants find fault during the review, then borrowers who suffered financial injury because of errors, misrepresentations or other problems may get money or some other remedy.
The remediation could be significant. If reviewers discover that you were financially injured, you might be entitled to a lump-sum payment, a suspension or rescission of a foreclosure, a loan modification, a correction to your credit reports, or a correction of deficiency amounts. The servicers are providing the compensation as a result of the enforcement actions taken last year.
If you homed in on the money part, which I certainly would if I had gone through a foreclosure, here’s what could be on the table. Lump-sum payments can range from $500 to $125,000 in the worst cases involving the lost of a home, said Bryan Hubbard, a spokesman for the Office of the Comptroller of the Currency. The cash payments are not subtracted from any debt you might have owed on the home.