This is good information. If you had any clients who lost a home to foreclosure they may be eligable for financial compensation from their former lenders.
During 2009 through 2010, more than 2 million were foreclosed on (or when in the process of doing so). Banking regulators regulators announced this week that those foreclosed on will now be given the chance to ask for a review of their case.
Due to the fact that many foreclosures where handled incorrectly during 09-10, mortgage services can now hire independent auditors to conduct reviews of the cases and determine if home owners should receive financial compensation. They will also look into the cases of those who were denied loan modifications when they may have been eligible for one. Those who ask for a review will receive a letter overview of their rights.
The move is to help identify home owners who may have been improperly foreclosed upon, Julie Williams, chief counsel of the Office of the Comptroller of the Currency, said at a congressional hearing.
Banks are given until Wednesday to submit their plans to the OCC (Office of the Comptroller of the Currency) on how they intend to revamp the current foreclosure procedures.
Source: "Foreclosed Home Owners May Seek Case Reviews," USA Today (July 8, 2011)