Sarah Mirando  |  April 10, 2013

Category: Legal News

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Payments in Bank Foreclosure Abuse Settlement Begin Friday

By Sarah Pierce

 

bank foreclsoure settlement

Update 4/17/13: The Settlement Administrator has confirmed that some early payment recipients have experienced problems cashing their checks. This issue will be resolved shortly.


Starting Friday, more than 4 million homeowners who faced foreclosure in 2009 and 2010 will begin receiving payments from the $9.3 billion bank foreclosure abuse settlement announced last month by the Office of the Comptroller of the Currency (OCC) and the Federal Reserve.

Under the settlement, $3.6 billion will go to affected homeowners in the form of a cash check. The remaining settlement funds will go to struggling borrowers in the form of assistance, including loan modification and forgiveness.


According to a chart released yesterday, payments from the bank foreclosure abuse settlement will range from $300 to $125,000 – the maximum amount allowed under the settlement terms. The payments will come in multiple waves, beginning April 12, with the majority of affected borrowers receiving their payments by the end of the month. The final wave is expected to commence mid-July 2013.

The settlement is part of an investigation by the OCC and Federal Reserve into allegations that 13 banks engaged in improper foreclosure methods in 2009 and 2010.

The banks — Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo – are accused of wrongfully denying loan modifications, charging improper fees, robo-signing documents, and more.

Eligible borrowers do not need to do anything to receive a payment under the bank foreclosure settlement. Checks will automatically be mailed from Settlement Administrator Rust Consulting. Rust has already sent postcards to the 4.2 million borrowers notifying them of their eligibility to receive payment under the agreement.

Borrowers can call Rust at 1-888-952-9105 to update their contact information or to verify that they are covered by the agreement. Borrowers are warned to beware of scams and anyone asking them to call a different number or to pay a fee to receive payment under the agreement.

Accepting payment does not prevent these borrowers from pursuing legal action related to their foreclosure.

 

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Updated April 17th, 2013

 

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40 thoughts onPayments in Bank Foreclosure Abuse Settlement Begin Friday

  1. Deirdre A. Martin says:

    5 yrs of disputing against Suntrust Hamp settlements breach of contract.

  2. Alma Rodriguez says:

    Where can I go to find out if Im part of Class Action

  3. Lanne says:

    I received a check for $1484. from Rusk.

  4. Bonnie Bryant says:

    My dispute is with U.S. Bank. My home was valued at $124,000 by State Farm Insurance Company. I am an inactive veteran and I only received $300 from Rust Consulting Company. I, too, called several times, requesting information on how they determined the amount of money that was issued to me from the class action lawsuit. I, too, agree with everyone who has found fault with this agency. I have handed in all of my documents pertaining to the bank foreclosure issues to an La investigator reporter, because no attorney would accept my case. Class action lawsuits are just another form of fraud. Losing a home is not worth $300.

  5. Julie says:

    Go ahead and sue, but you should maybe research before you go off blowing steam. There are two settlements. The one that is paying $840 (probably more) has not started paying out yet. They put out a news release on Monday that those payments will start going out in 4 to 8 weeks. Please wrap your mind around this —- THERE ARE TWO SETTLEMENTS. YOU MAY GET PAID FOR BOTH OF THEM.

  6. bj mcgee says:

    I have posted once and would like to know if anyone is ready to start a CLASS ACTION SUIT against any of these idiots who were put in charge!! information I received that the least amount anyone would get is $840.00. so how in the _ _ _ _ are people getting $300.00? time all of these so call organizations who have been putting their hands in our pie are being paid money we deserve. i’m talking thousands and thousands of dollars. someone needs to do some investing into their involvedment. probably why some of us will only get the minimum..

  7. Julie says:

    Got my check today. $300. Should have been $60K since I was paying on a Chapter 13 when they foreclosed. But then again, the banks are the ones deciding who gets what. I really don’t think this is over…

  8. Scooter says:

    Is anyone really getting checks?

  9. Jen says:

    Checks for larger amounts are sent certified mail.

  10. Julie says:

    Here is some more information regarding why it may be taking longer to get checks to some people. It seems this money may now be taxable (someone needs to hire a lawyer) because these checks are not being considered “damages.” http://4closurefraud.org/2013/04/17/all-payments-received-in-connection-with-the-independent-foreclosure-review-payment-agreement-may-be-subject-to-taxation-as-income/

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Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.