Federal Foreclosure Review Deadline Looming

September 19, 2012 (Press-News.org) In February 2012, the federal government announced that it reached a settlement with the four largest mortgage-lending companies in the U.S. and several state governments in the "robo-signing" scandal. Many had accused the lenders of committing improprieties in the foreclosure process and inappropriately foreclosing on countless homeowners during 2009 and 2010.

The four lenders paid about $25 billion in fines to the federal and various state governments as part of the settlement agreements. What people may not know is that as part of the agreement, the federal government is requiring the lenders to provide independent foreclosure reviews for homeowners who believe their foreclosures were improper. Those who lost their homes to foreclosure should be aware that the deadline to take advantage of these reviews is rapidly approaching.

Foreclosure Review Program

As part of the national foreclosure settlement, the Federal Reserve Board required each of the four lenders to retain independent consultants to review foreclosures that began, were ongoing or completed in 2009 or 2010 to see if homeowners suffered financial harm due to any irregularities in the foreclosure process. The lenders were obligated to notify borrowers that this review option was available to them and that they may qualify for compensation if the lender acted wrongly in foreclosing.

The government also extended the review requirement to a number of other lenders that the Office of the Comptroller of the Currency supervises. By mid-May 2012, 194,000 people had requested reviews of their foreclosures and the government selected another 142,000 people for reviews because their foreclosures may have violated bankruptcy laws or the Servicemembers Civil Relief Act.

Qualifying for Review

To be eligible for a review, a foreclosure must have been:
-Secured by the borrower's primary residence
-Initiated, pending or completed between January 1, 2009 and December 31, 2010
-Serviced by one of the lenders obligated to provide reviews

Review Deadline

Those who want their foreclosures reviewed need to act quickly. The deadline for the reviews is July 31, 2012. Those who qualify have nothing to lose in requesting a review and they may end up being compensated for wrongs they suffered at the hands of their mortgage servicers. Although the government selected some homeowners for review, do not rely on it to notify you.

Unfortunately, not everyone is eligible for a foreclosure review. Those who fear losing their homes but do not qualify for a review should consider discussing their options for saving their homes with an experienced debt relief attorney.

Article provided by Wyatt & Gracey, PC
Visit us at http://www.wyattpllc.com/