 Approximately 64,000 Illinois borrowers who lost their home to foreclosure
between Jan. 1, 2008, and Dec. 31, 2011, may be eligible to receive a payment
under the national settlement, but only if they file a claim. Eligible borrowers
had mortgages serviced by Ally/GMAC, Bank of America, Citi, JPMorgan Chase or
Wells Fargo, the nation's five largest mortgage servicers. These banks agreed to
the settlement with the federal government and attorneys general for 49 states
and the District of Columbia.
The 2012 settlement earmarked approximately $1.5 billion in payments for
approximately 2 million borrowers nationwide who lost their homes to foreclosure
during 2008 to 2011 and had their loan serviced by one of the five settling
servicers. The exact payment each borrower receives will depend upon the total
number of borrowers who participate by filing a claim.
"The deadline to submit a claim is just days away," Madigan said. "We know
there are still thousands of eligible Illinois borrowers who haven't stepped
forward. I urge anyone whose mortgage was serviced by one of these five banks
and who lost their home to foreclosure to contact the settlement administrator
immediately."
The settlement administrator sent the initial claim form packets to Illinois
borrowers between Sept. 24 and Oct. 12, 2012. On Dec. 26, 2012, the
administrator mailed reminder claim form packets to all eligible borrowers who
had not yet submitted a claim form.
Madigan urges eligible Illinois borrowers to complete their claim forms and
return them as soon as possible in the envelope provided, or file them online at
www.nationalmortgagesettlement.com by the Jan. 18 deadline. Payment checks
are expected to be mailed in mid-2013.
Madigan said borrowers who have questions or need help filing their claim
should contact the settlement administrator at 1-866-430-8358, or send questions
by email to
administrator@nationalmortgagesettlement.com. The information line is
staffed Monday through Friday from 7 a.m. to 7 p.m. Central time.
Spanish-speaking representatives are available. All borrowers -- regardless of
which bank serviced their mortgage -- should contact the settlement
administrator through these channels.
[to top of second column] |
Madigan said eligible borrowers do not need to prove financial harm
to receive a payment, nor do they give up their rights to pursue a
lawsuit against their mortgage servicer or to participate in the
independent foreclosure review process being conducted by federal
bank regulators. Eligible borrowers may get a payment from this
settlement even if they participate in another foreclosure claims
process. However, any payment received may reduce payments borrowers
may be eligible to receive in any other foreclosure claim process or
legal proceeding.
Madigan also warned borrowers to be on the lookout for potential
scams connected with the foreclosure settlement. She instructed
consumers to ignore any solicitations for upfront payments and not
to provide personal information to anyone who calls or emails
claiming that they are providing settlement-related assistance. If
you believe someone is conducting a settlement-related scam, contact
Attorney General Madigan's Homeowner Helpline at 1-866-544-7151 to
report the incident.
The settlement addressed allegations of the five banks'
widespread "robo-signing" of foreclosure documents and other
fraudulent practices while servicing loans of struggling homeowners.
It is the second-largest settlement ever obtained through joint
action of state attorneys general. In addition to providing more
than $1 billion in relief to assist Illinois residents who have lost
their homes, are underwater or at imminent risk of defaulting on
their mortgages, the settlement also set new, more stringent
mortgage servicing standards to prevent lenders' abuses that many
consumers have faced while trying to save their homes and during the
foreclosure process.
[Text from file received from the office
of
Illinois Attorney General Lisa
Madigan]
 |
