Advertising and other outreach efforts are kicking off around the country to remind eligible borrowers of the Dec. 31 deadline to request a free, impartial review through the federal government’s Independent Foreclosure Review.
Print, radio, television and online advertising will target communities hit hardest by mortgage foreclosures. Eligible borrowers will also be contacted by mail, e-mail and phone. The government will even coordinate its efforts with community, housing and faith-based groups. In addition to English, advertising and information is available in Spanish, Mandarin, Korean, Vietnamese, Hmong, Russian, Creole and Tagalog.
Mortgage servicers must reach out to foreclosed owners following an order by the U.S. Office of the Comptroller of the Currency and Board of Governors of the Federal Reserve System. As part of an April 2011 enforcement action, the agencies required 14 large mortgage servicers to retain independent consultants to conduct a comprehensive review of foreclosure activity in 2009 and 2010. The goal: to identify borrowers who may have been financially injured due to errors, misrepresentations or other deficiencies in the foreclosure process.
If an ex-homeowner’s review finds that financial injury occurred, the borrower may receive remediation such as a lump-sum payment, suspension or rescission of a foreclosure, a loan modification or loss mitigation assistance, correction of credit reports, or correction of deficiency amounts and records. Lump-sum payments can range from small amounts for less serious errors to $125,000 plus equity in the most egregious cases.
Eligible borrowers include people whose primary homes were involved in the foreclosure process in 2009 or 2010, and whose mortgages were serviced by one of the participating mortgage companies listed at http://www.independentforeclosurereview.com. Federal regulators are monitoring the process to ensure they’re conducted thoroughly and impartially.
Requesting a review does not preclude borrowers from taking other action related to their foreclosure. Servicers can’t require a borrower to sign a waiver of the borrower’s ability to pursue claims against the servicer in order to receive compensation under the Independent Foreclosure Review.
There are no costs associated to have a foreclosure process reviewed. More information, including how to apply online, is available at http://www.independentforeclosurereview.com. Community groups who want to boost program awareness can download materials at: https://independentforeclosurereview.com/Toolkit.aspx.
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