Feds Provide Recourse for Wrongful Foreclosure Victims

It’s no secret that Florida and the rest of the country has suffered through and continues to suffer through a tough economy.  The Great Recession has claimed the livelihoods and homes of many throughout Orlando as savings and even retirement accounts have been tapped into to make ends meet.

At the same time, far too many homeowners faced foreclosure because of improper behavior on the part of their mortgage servicers. Sadly, Orlando foreclosure defense attorneys see it all the time.

But, finally, the federal government has taken notice of these wrongful foreclosures and is giving Orlando-area homeownes, as well as homeowners throughout the U.S., a way to fight back.

Independent Foreclosure Reviews Available

Borrowers whose primary residence was in the foreclosure process at some point between January 1, 2009 and December 31, 2010 are eligible to seek an independent review of their foreclosure proceedings if they believe they were wronged by their mortgage servicer.

The reviews are available to customers of 24 major mortgage servicers including Chase, CitiBank, Countrywide, GMAC Mortgage, Bank of America, IndyMac, U.S. Bank, Wachovia, Washington Mutual and Wells Fargo.

Borrowers who are found to have suffered financial injury may be entitled to monetary compensation. Qualifying financial injuries include, but are not limited to the following:

  • The balance of the mortgage at the time of foreclosure was more than the borrower actually owed
  • The borrower was complying with the terms of a mortgage modification agreement, but the servicer still proceeded with a foreclosure sale
  • The foreclosure action took place while the borrower was protected by bankruptcy
  • The borrower properly requested assistance or modification and was waiting on a decision when the foreclosure sale happened
  • The fees charged on mortgage payments were incorrect
  • The foreclosure action occurred while the borrower was on, or had recently ended, active military duty.

It is not necessary for the foreclosure sale to have been completed to qualify for the review.

Borrowers who think they may be eligible can call the Independent Foreclosure Review program at 1-888-952-9105 to request an application and have questions answered.

Source: CBS Money Watch, “Foreclosure Victims Get New Help From Feds,” 3 November 2011

The owner of this website has made a commitment to accessibility and inclusion, please report any problems that you encounter using the contact form on this website. This site uses the WP ADA Compliance Check plugin to enhance accessibility.