Connecticut residents whose primary homes were foreclosed on in 2009 and 2010 might be eligible for compensation.
A federally-backed review of claims against loan servicers and their foreclosure tactics is underway.
Some situations that might allow a borrowers some compensation include:
- The mortgage balance amount at the time of the foreclosure action was more than you actually owed.
- You were doing everything the modification agreement required, but the foreclosure sale still happened.
- The foreclosure action occurred while you were protected by bankruptcy.
- You requested assistance/modification, submitted complete documents on time, and were waiting for a decision when the foreclosure sale occurred.
- Fees charged or mortgage payments were inaccurately calculated, processed, or applied.
- The foreclosure action occurred on a mortgage that was obtained before active duty military service began and while on active duty, or within 9 months after the active duty ended and the servicemember did not waive his/her rights under the Servicemembers Civil Relief Act
Here’s the official release from the State Attorney General and Banking Commissioner, urging people to apply to the claims process.
HARTFORD – Attorney General George Jepsen and state Banking Commissioner Howard F. Pitkin are encouraging Connecticut borrowers who believe they suffered financial injury because of harmful mortgage loan servicing and foreclosure practices to participate in an Independent Foreclosure Review and claims process.
“This presents an opportunity for Connecticut borrowers to receive some compensation for damages they suffered as a result of harmful practices by the loan servicing companies during foreclosure,” Attorney General Jepsen said. “I would encourage them to take advantage of this program.”
Commissioner Pitkin added, “This is an important program and I encourage anyone who was involved in the foreclosure process and is eligible to participate in this review.”
To be eligible for review and financial remediation, borrowers must have had a mortgage in the foreclosure process between Jan. 1, 2009, and Dec. 31, 2010. In addition, the property securing the loan must have been the borrower’s primary residence, and the loan must have been serviced by one of the following loan servicers:
- America’s Servicing Company
- Aurora Loan Services
- Bank of America
- GMAC Mortgage
- IndyMac Mortgage Services
- Metlife Bank
- National City
- Sovereign Bank
- SunTrust Mortgage
- U.S. Bank
- Washington Mutual
- Wells Fargo
The Independent Foreclosure Review and claims process was ordered by the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System – the federal agencies with responsibility and authority to regulate and supervise the loan servicers.
The federal agencies have ordered independent firms to evaluate whether individual borrowers suffered financial injury as a result of their loan servicer’s errors, misrepresentations, or other deficient foreclosure practices; and to determine the appropriate amount of financial remediation that the loan servicer must provide to individual borrowers.
Many Connecticut borrowers have already received letters from the independent firms approved by the federal regulators. Those and other eligible borrowers are advised to complete the forms and mail them to the address provided by the April 30, 2012 deadline. Borrowers who have questions regarding the Independent Foreclosure Review and claims process should call the program administrator at 1-888-952-9105 or visit the program website at www.independentforeclosurereview.com.
Connecticut homeowners experiencing difficulty making their mortgage loan payments currently should contact the state Department of Banking’s Foreclosure Assistance Hotline. The Department assists homeowners who are attempting to achieve loan modifications and prevent foreclosure. The Department’s website, www.ct.gov/dob, has valuable information about avoiding scams, applying for loan modifications, and navigating the foreclosure process. Homeowners can call the Foreclosure Assistance Hotline at 1-877-472-8313.