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  • Borrowers wrongfully harmed by foreclosure to receive compensation

    Mar 29, 2013 | Read More News
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    The Pima County Housing Center wants homeowners who may have been wrongly harmed by foreclosure in 2009 or 2010 to know that they may be receiving compensation.

    Homeowners who requested a free Independent Foreclosure Review by Dec. 31, 2012, in connection with the U.S. government’s enforcement actions against 13 mortgage servicers are among the more than 4.2 million people nationwide who will receive payment.

    The $3.6 billion in cash payments come as a result of an agreement between federal banking regulators and the 13 mortgage servicers, including Bank of America; Countrywide; Chase; Citibank; Morgan Stanley; Wells Fargo Bank, N.A.; U.S. Bank; Wachovia Mortgage; and Washington Mutual. According to the Office of the Comptroller of the Currency, payments are expected to range from a few hundred dollars to $125,000.

    Those receiving payment may still pursue their own legal claims against their servicer. In most cases, a letter and check from the paying agent – Rust Consulting Inc. – will arrive in four to eight weeks. Some borrowers may receive a letter from Rust requesting additional tax-related information that will be needed to process their payment.

    To verify that you are covered by the agreement or to update contact information, call Rust Consulting at 1-888-952-9105. Information provided to Rust will only be used for purposes relating to the agreement.

    If you need additional help with foreclosure prevention, please contact the Pima County Housing Center at (520) 624-2947; or the Homeowner's HOPE Hotline at 888-995-HOPE (4673) or at www.makinghomeaffordable.gov.

    The review process for more than 450,000 borrowers serviced by OneWest, Everbank, and GMAC Mortgage continues because these companies did not enter into the agreement with federal banking regulators. Regulators expect the review process for these companies to be completed over the course of the coming year. Eligible borrowers at these servicers who requested a review will receive information about their review when it is available.

    For more information, please visit: