Few Ohio Homeowners Take Advantage of Independent Foreclosure Review

September 27, 2012 (Press-News.org) Homeowners in Ohio have been hit hard by the Great Recession and its lingering effects. Despite the large number of distressed homeowners in the state, few people facing foreclosure have participated in a free review of their foreclosure case. If a legal deficiency is found within the foreclosure case, homeowners may receive compensation for any financial harm they have suffered as a result of the foreclosure.

The Independent Foreclosure Review determines whether individual homeowners suffered financial harm and should receive compensation or another remedy because of errors, misrepresentations or other problems during their home foreclosure process. According to the Associated Press, mortgage lenders sent notification letters offering Independent Foreclosure Review to more than 140,000 eligible homeowners in Ohio who faced foreclosure between 2009 and 2010. But, a report by the federal Office of the Comptroller of the Currency shows that only 6,000 eligible homeowners in Ohio requested reviews at the beginning of the summer.

Eligible homeowners have been difficult to find because many have already lost their homes and others are reluctant to open mail addressed from a bank. Despite the low response rate, efforts to reach distressed homeowners continue. To qualify for the Independent Foreclosure Review, homeowners must have had their loan serviced by one of 14 lenders and must have been involved in a foreclosure process between January 1, 2009 and December 31, 2010. The banks subject to the program include Wells Fargo, Citi, JPMorgan Chase, Bank of America, PNC/National City, U.S. Bank and others.

Homeowners who went through foreclosure and wrongly suffered financial harm may receive a lump cash payment, a correction to their credit report, reimbursements for out-of-pocket expenses, and payment for lost equity. In total, eligible homeowners could receive $500 to $125,000. Harmed homeowners may possibly receive $1,000 if the homeowner was never offered a loan modification, $2,500 to $15,000 if a loan modification was wrongly denied, or up to $125,000 if the homeowner was not actually in default when the foreclosure began. If a foreclosure case is still in process and an error is discovered, homeowners will not be offered cash compensation but the foreclosure process will be suspended.

In addition to the free Independent Foreclosure Review, distressed homeowners in Ohio have other programs that can provide assistance, such as The Ohio Housing Finance Agency's Restoring Stability program.

If you are a distressed homeowner in Ohio, contact an experienced foreclosure attorney to review your legal options and to explore federal and state programs that may offer financial assistance.

Article provided by Patrick J. Conway, LLC
Visit us at http://www.patrickconwaylaw.com/