Independent Review of Foreclosures for Qualified Homeowners – Foreclosures Involving “Bad Practices” Between 1/1/09 & 12/31/10

Lenders and mortgage servicers nationwide have either slowed or ceased foreclosure activities due to what has commonly been termed, “Robo-signing.” These activities involved affidavits necessary to complete a foreclosure that were signed without prior review by authorized personnel.
As a result of litigation arising from robo-signed documents in Florida, foreclosure “bad acts,” and other industry-wide consumer abuses led to 49 state attorneys general and the Obama Administration reaching a $25 Billion Settlement with most of the nation’s largest lenders and mortgage servicers. Such Defendants include: BAC/Bank of America, Chase, Citibank, Countrywide, GMAC, IndyMac, U.S. Bank, Wachovia, Washington Mutual, and Wells Fargo. Other lenders and mortgage servicers not listed here were either parties in the litigation or volunteered to participate.
The $25 Billion Settlement amounted to only a slap on the wrist for the banks. However, what gives the settlement some teeth are the following additional outcomes:
• Banks agreed to pay penalties to mortgage abuse victims and fund foreclosure mitigation
• All parties agreed to higher mortgage-servicing standards
• A national Independent Foreclosure Review process for qualified homeowners who are or were subject to bad practices between 1/1/09 and 12/31/10:
o Review process for borrowers currently or previously in foreclosure with participating lenders
o Borrowers supposedly have already received written notice of the program and their right to participate
o Foreclosure actions will be reviewed to determine if borrower has been “financially harmed” by poor practice
Applications for the above-described review must be received by September 30, 2012. As such, please notify your entire seller clients that may qualify and have them contact NRELG at (888) 734-0026 to participate. Call NRELG for more details. Thank you.

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