June 21, 2012
The Office of the Comptroller of the Currency and the Federal Reserve Board said today that they have extended to September 30, 2012 the deadline for eligible borrowers to request a free review of their mortgage foreclosure to determine if they are eligible for compensation. The new deadline gives borrowers two additional months to submit a request for review.
Compensation for injuries may include lump-sum payments, suspension or rescission of a foreclosure, a loan modification or other loss mitigation assistance, correction of credit reports, or correction of deficiency amounts and records. Lump sum payments can range from $500 to $125,000 plus equity for the most serious cases.
If you suffered any of the following injuries by a mortgage servicer, you may be eligible for relief:
- Foreclosing on a borrower who was not in default on the mortgage;
- Failing to convert a qualified borrower to a permanent modification after successful completion of a written modified payment plan that was supposed to lead to permanent modification;
- Foreclosing on a borrower prior to expiration of written modified payment plan that leads to permanent modification, while borrower was performing all requirements of the written plan;
- Denying a borrower’s loan modification application that should have been approved;
- Failing to offer loan modification options as required by applicable program;
- Giving a borrower a loan modification with a higher interest rate than should have been charged under the relevant loan modification program;
- Foreclosing on a borrower in violation of federal bankruptcy laws;
- Not providing a borrower with proper notification during the foreclosure process; and
- Committing errors that did not result in foreclosure, but resulted in other financial injury;
- Foreclosing on a borrower in violation of the Service Members Civil Relief Act.
Requesting a review does not preclude borrowers from taking other actions related to their foreclosures. A servicer is not permitted to require a borrower to sign a waiver of the borrower’s ability to pursue claims against the servicer in order to receive compensation under the Independent Foreclosure Review.
More information, including how to apply online, about the Independent Foreclosure Review is available at http://www.independentforeclosurereview.com.
