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Payments in Bank Foreclosure Abuse Settlement Begin Friday
By Sarah Pierce
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.
Updated April 17th, 2013
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40 thoughts onPayments in Bank Foreclosure Abuse Settlement Begin Friday
I got the infamous postcard notice from Rust saying I was getting a check from the BOA Overdraft settlement in November. The checks went out in November. I never got mine. Over the past four months I have sent numerous letters and voicemails and emails. They don’t even respond. They are frauds.
Looks like Rust is committing FRAUD. Over 6 years on the DeBeers payouts and now sending out fraudulent checks (which is a Felony). How do we get the US AG to investigate Rust?
I been calling Rust almost everyday just to see if my payment has been mail yet and still the answer is”no”.
The waiting is killing me,lol
What a nightmare. Some of these checks are being refused due to “insufficient funds” from Rust. If you get a check, I’d make sure and wait a while before spending anything until the money clears. http://online.wsj.com/article/PR-CO-20130416-917548.html?mod=googlenews_wsj
No check for me today yet. I didn’t realize the big ones have been sent out then. I am curious then what they are talking about when they say they may need more information and what is holding up checks until July.
These are the check amount that people who received their check got so far;300,400,500,600,800,3750 & 6000 and one person rec” 15k
I think they said something like 90 percent of checks would be mailed out this month and the rest by mid-July. If you do the math, that makes sense in that 90 percent are getting less than $600. Most likely if you are owed more than that you will get tax paperwork to fill out so they can issue 1099s at the end of the year.
I called Rust and they told me that my payment has not been issue yet so I will call every week to check.
I received a check for $500 yesterday. Based on what I went through and the lists of payments, I should have received $50,000. The letter does not state why/how they determined what category I was in. So I’m obviously disappointed because $500 is nothing compared to me losing my house – but it’s $500 more than I had the day before.
I want to sue Independent Foreclosure Review, Wells Fargo, & all the crooks in the banking industry. Top-Class ..A IFR Class Action Lawsuit worth $5 billion dollars!!!!!!!!!! Tonight