Foreclosed Homeowners To Receive First Round Of Settlement Payments
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Idahoans who lost their homes to foreclosure in 2009 or 2010 and had loans through any of these mortgage servicers soon could receive some measure of compensation. Payment checks will be in the mail Friday, the result of a $9.3 billion settlement between banks and federal banking regulators.
There is no information available about how many foreclosed homeowners will receive compensation in each state, says a Treasury Department spokesman. The New York Times‘ Dealbook blog offers this summary of who will receive the first round of cash relief:
Among those borrowers in the first group to receive relief are the 1,082 service members who were foreclosed on illegally by banks. Under the settlement, each borrower will receive about $125,000, the largest amount of relief.
Homeowners who were foreclosed on even though they never missed a mortgage payment will also receive a check in the first round of payments. The comptroller’s office said that there were 53 such borrowers, whose homes will receive $125,000. Another 626 homeowners who were wrongfully foreclosed on will receive $5,000 to $15,000 in relief because their foreclosure was not completed or was reversed.
The largest category of borrowers slated to get money are the more than half a million homeowners who were deprived of a loan modification or other loss mitigation assistance. The 568,476 borrowers that fall into that group are to receive $300 each. — The New York Times
This settlement, known as the independent foreclosure review, is separate from the $25 billion national mortgage settlement reached last February, and has been widely criticized as a bungled process.
Idaho borrowers whose mortgages were serviced by one of the five large banks involved in the national mortgage settlement should receive checks beginning mid-year. According to information released at the time of that settlement, about 5,000 Idaho borrowers who lost their homes between 2008 and 2011 are collectively eligible for nearly $10 million in compensation.