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If you were foreclosed on, you may be getting a check under new settlement

REUTERS - File

REUTERS - File

— Borrowers whose homes were in foreclosure in 2009 or 2010 can expect to receive between $300 and $125,000 under settlements reached between top banks and U.S. regulators earlier this year.

The payments will begin going out on Friday, the Federal Reserve and the Office of the Comptroller of the Currency said on Tuesday.

The agreements with 13 mortgage servicers, including units of Bank of America Corp, Citigroup Inc, JPMorgan Chase & Co, Wells Fargo & Co, provided $3.6 billion in cash payments to borrowers who were at any stage of the foreclosure process at the height of the housing crisis.

Although regulators entered into the settlements in January, at the time they only provided estimates of what borrowers might expect to receive.

On Tuesday the agencies said 1,082 borrowers who were active duty members of the military had foreclosures completed on their homes and would receive $125,000 each. About 50 borrowers who were not in default but had foreclosures completed on their homes will also receive the top $125,000 payout.

The largest numbers of borrowers, between 300,000 and 750,000, will receive between $300 and $600. Borrowers whose servicers did not engage with them in assessing loan modification options will receive $600 if they requested a review, or $300 if they did not, for example.

Some 4.2 million borrowers are eligible to receive payments, and checks to 1.4 million of them will be sent out on Friday, regulators said.

Comments

MRKIA 1 year, 8 months ago

GOOD FOR OUR MILITARY SERVICE MEN, THEY SHOULD BE PROTECTED.

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VietVet1 1 year, 8 months ago

WOW! So if I go out and buy a home I don't have a clue on how to finance then I'd be open for a settlement? Don't you just love the American way?

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KaosinAlbany 1 year, 8 months ago

Wow, I just don't think the bank were totally at fault. Some did use predator practices but some knew of their income and whether they can afford it or not.

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