Good news for the borrowers!! :) Federal regulators and nation's largest mortgage servicers have announced that around 4 million borrowers, who had faced the problem of foreclosure since early 2009, will now have the chance to get their foreclosure cases reviewed for potential wrongdoing. Some of the examples of financial injury can be the miscalculated fees charged to borrowers, foreclosure of property when borrower has filed bankruptcy, foreclosure of the property when borrower had applied for loan modification and so on.
The foreclosure review deal:
In the beginning of this year, around 14 servicers agreed to hire independent consultants in order to evaluate whether or not borrowers suffered financial losses as a result of the foreclosure process. If any error is found, the consultants will let the financial firms know what compensation should be granted to the homeowners.
The foreclosure review process:
The process of reviewing the foreclosure has already started. The servicers have started mailing letters to the estimated 4 million borrowers who had suffered foreclosure between Jan. 1, 2009, and Dec. 31, 2010. The mail will mention the process to request a review of the foreclosure. This process of sending mails will continue till the end of the year. Also, a large-scale marketing campaign will be initiated so that the borrowers are aware of this foreclosure review process. A common website and call center has been developed for this process.
The best part is that the borrowers won't have to pay anything in order to take part in this process. It is the servicers who will have to foot the bill for the independent consultants who are conducting the reviews.
However, the negative aspect of this foreclosure review process is that no information is available as to how long the reviews will be conducted and what compensation the homeowners will gain. So, if you receive such a mail, first clarify all the details from your lender and then take the next step.