Sarah Mirando  |  March 4, 2013

Category: Legal News

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

Follow us on Twitter and Facebook for the latest Class Action Lawsuit Settlement News!

 

Banks to Pay $9.3 Billion in Foreclosure Abuse Settlement

By Sarah Pierce

 

foreclosure abuse

UPDATE: Payments in the Bank Foreclosure Abuse Settlement will begin April 12, 2013. Millions of borrowers can expect to receive a check in the mail by the end of the month.


Thirteen banks will pay a total of $9.3 billion to settle federal charges they engaged in foreclosure abuse during the U.S. housing crisis. Borrowers whose mortgages were serviced by one of the banks can expect to receive between a few hundred dollars and $125,000 from the settlement.

The Office of the Comptroller of the Currency (OCC) and the Federal Reserve announced the final mortgage abuse settlement Thursday, which includes Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo.


The federal agencies accuse the banks of engaging in improper foreclosure methods in 2009 and 2010 that included wrongful denial of modifications, improper fees, flawed mortgage servicing and processing practices, and robo-signing – the process of rapidly approving numerous foreclosures and submitting them to courts without having read them to determine if they were proper.

Rust Consulting Inc., which specializes in class action settlement administration, will handle distribution of the funds and is expected to contact affected homeowners by the end of March. Eligible foreclosed borrowers will start receiving payments in April from a $3.6 billion fund. The remaining money will go to struggling borrowers in the form of assistance, including loan modifications and forgiveness.


Over 4 million people whose homes were in any stage of foreclosure in 2009 or 2010 and whose mortgages were handled by one of the 13 mortgage services will be covered by the foreclosure abuse settlement. These borrowers will not need to take any action to receive their payments, nor will they have to waive their legal rights to sue the banks as a condition for payment, according to reports.


Top Class Actions will provide further details on the Bank Foreclosure Abuse Settlement once official notice of the deal is published.


We tell you about cash you can claim EVERY WEEK! Sign up for our free newsletter.

 

Updated April 10th, 2013

 

All class action and lawsuit news updates are listed in the Lawsuit News section of Top Class Actions

LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2013 Top Class Actions® LLC
Various Trademarks held by their respective owners

72 thoughts onBanks to Pay $9.3 Billion in Foreclosure Abuse Settlement

  1. Rocio Gonzalez says:

    I went through all these lies with GMAC as well, I was working on a mortgage modification during 2009 after having my home for 5 years and had a good profit. This bank accepted my modification for 6 mons plan starting with the first 5 mons at $600. monthly mortgage payments then the 6th was calculated at 13,000. Once they accepted my modification couple months later they turn around and put my home on foreclosure without letting me know. Next day a investor came to my door and told me I only had 10 days to evacuate the home or they will kick me out. The investor showed me a $43,000 check paid to GMAC for tmy property purchase. I learned from this. Now I took real estate classes and learned that a broker can help you save your home before you go into foreclosure. The broker will list it for sale and you will be able to get a profit, instead of loosing it. Always keep receips, documents, email communications or letters with the bank for your records. If you dont like the service of any bank, you have the right to dispute it or make a complain. Good Luck any one with this situations. Dont let the banks fool you.

    1. Angie Malone says:

      I lost my home. We had a little over 3 acres. They mailed me a check 2 years later for like $1200. The property is for sale for 2 million commercial. I feel like columbia mo is scavanging land. Its been since 2010. Ive moved every year…this is horrible!!!!

  2. abel lopez says:

    Yo vindi mi casa en el 2011 en una Short-Sale ,tenia GMAC uno de mis Morgage,ellos lo vendieron a Ocwen despues de la venta de Short-Sale,y estos Hijos de….. Informaron al burot de Credito que fue un Foreclusure. Que elguien me diga que puedo hacer.

  3. Steven says:

    What a horrible this experience was. There’s nothing about this that doesn’t stink.

  4. donna says:

    citi forclose on me illegally

  5. Wayne Dennis says:

    I had been working with Chase Bank for 4 years trying to get a mortgage modification. Then they came back with a monthly mortgage modification which was MORE than my original mortgage monthly payment. Under those circumstances my family was forced to rent an apartment before we were thrown out in the street. Subsequently the bank has sold my house for more than i owed. Banks don’t care to help current owners because they’re getting financial support from the government.

  6. James Hirschfeld says:

    Would you all like a laugh regarding citi mortgage……..
    Go to Citi’s web site look at what the requirements are to be a loan modification counselor.
    1). Must have a H.S. degree or a GED diploma
    2). Take a few short study work shops

    And then ta da, they can determine our fates of whether or not we have homes to live in …..this just doesn’t seem right nor does it make sense.

    Everytime you think you get all the paperwork in, they say they did not receive page 10 and so on and so on.
    Then they switch counselors on you and say you must re-submit all the documentation again. Hopefully, after so much frustration takes over you just quit and walk away.

    Don’t ……Fight the fight ! Our elected officials are starting to see these little slap on the wrist fines aren’t doing a damn thing. Finally they are calling for prosecution and jail for the felons that are stealing our homes. Keep writing to your Congressmen and women, your senators, and Sen. Tim Johnson and Sen. Mike Crapo ranking member, they can not ignore the OIG’s report on Citi Mortgage and their findings. Google this report
    March 12, 2012 and read the conclusion…….it is all right there in black and white.

    U.S. Senate Committee on Banking, Housing, and Urban Affairs
    534 Dirksen Senate Office Building
    Washington, D.C. 20510
    P: (202) 224-7391
    F: (202) 224-5137

  7. James Hirschfeld says:

    Let me clarify something, it’s a damn cold slap in the face getting 3-500 dollars checks. However now there is the 2nd part of the principal reduction which should be getting notice of mid summer. Also folks, it is my understanding that even if you didnt sign up……you will be included in the settlements.
    To be informed , is to be forearmed. Read the HUD rule book on the hamp program, the banks may NOT! proceed with any foreclosure filings if you are in the loan modification process. Don’t let them bully you
    Write to Sen, Tim Johnson, he chairs the Banking, Housing, and Urban Affairs Committee. Don’t even bother contacting the CFPB ( totally useless waste of tax payer dollars.
    call 888-995 HOPE……No charge and they are a liason between you and the bank and they will keep the notes for you! Senator Elizabeth Warren is calling for independent review of the independentreviewer, Rust Consulting. Don’t believe this is gonna be another bunch of bearacratic red tape. People remember MID-TERM ELECTIONS ARE COMING, OUR VOICES WILL BE HEARD! How the hell can they be making more than us ( the damaged one’s ). The Fed & The O.C.C. are in total derilection of their duties and gross negligence, they left it up to the very banks that stole from us to determine what group or bucket, we belonged in. Thats what determinbed the size of your check.

  8. James Hirschfeld says:

    I got excellent news today for all of us here in florida. Kim Miller from palm beach post is doing spectacular job at following this sham. Atty General Pam Bondi announced in todays sun sentinel, she was going to start prosecuting the banks that comitted felonies and not adhering to the principal rules and procedures of settlement agreement.

    I did write to Congresswoman Lois Frankel’s office and Senator Rubio’s office and they initiated investigation into my allegations of the Citi Mortgage committing acts of RICO, and fraudulently moving signature pages to other documents they said you signed, but never did!
    AMEN!
    Very interesting read people for customers of CitiMortgage>>>>> >>>>OIG report to the U.S. Dept.of Housing & Urban Developement dated March 12, 2012
    Just read the conclusion of what this investigation found out about how citi conducts their business practices.

    Keep fighting ” the more we are, the stronger we are “.

    I have a very unusual situation and am wondering if there is anyone out there that had the same thing happen to them. Hmmm, If there is anyone out there that has had 2 different permanent loan modification agreements drawn up and (1) one without your knowledge…….and moving your signature page from one document to the other!!!!!!
    Please contact me
    James Hirschfeld
    jmhstocks@yahoo.com
    I have an atty in WPB
    Donald Jacobson
    that would be willing to take on this case and file a federal class action suit.
    He is handling a civil case for me, however I don’t believe I can be the only one out there that Citi has done this to.

    PLEASE CONTACT ….

    DONALD JACOBSON
    120 S. OLIVE ST,
    SUITE 208
    W.P.B., FL 33401
    561-835-8436
    Donald@DNJLaw.com

    Hope this gives you all a ray of hope, I have been fighting these crooks for 5 yrs. Only to get slapped in the face witha 500 dollar check. WTF.

    Thanks for taking the time to read this, Don is willing to look at each case also on a case by case basis, however I am really in need of a couple more people that made it into final Modification only to have their signature page show up on a totally different contract.

    Again Thank You & God Bless. Its so blantantly rediculous what these banks have put us through and finally regulators are figuring out all their loopholes the banks are fraudulently trying to use, to steal our homes.

    .

  9. April Lewis says:

    I got my $300 check on 5/6/13. When Litton did my modification it was at a manageable $900 per month. My original 3 month trial period lasted 9 months and when the final modification paperwork came for me to sign the monthly mortgage jumped to $1509. When I called Litton to find out why the price hike they couldn’t give me a straight answer. Everyone I spoke to was from India so we had a communication issue. I was eventually told if don’t sign the modification acceptance they were going to foreclose on my home within 30 days. I hat tricksters. Makes me not want to own.a home again. Right now I’m struggling to pay my mortgage because a $102 difference 4 years was not the modification difference I was hoping for…I enjoyed the stress-free life of the $900 trial rate. I don’t know who to address my issue with.

  10. Joseph Tirador says:

    Received $300 Today. What a Ripp OFF.

    The Hell with all the banks.

    I am using this check for toilet paper.

1 5 6 7

Leave a Reply

Your email address will not be published. By submitting your comment and contact information, you agree to receive marketing emails from Top Class Actions regarding this and/or similar lawsuits or settlements, and/or to be contacted by an attorney or law firm to discuss the details of your potential case at no charge to you if you qualify. Required fields are marked *

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.