There are millions of stories of homeowners getting foreclosed on and then losing their home as a result. Many of these foreclosures followed the proper and legal procedures and there is no question that the homeowners were rightly forced out of their home for nonpayment of their mortgage. But there are about 4 million instances that are now eligible for review to find out if the procedure was illegal and the lenders acted too quickly to foreclose on many homeowners. The federal government has now announced plans to do something to help these homeowners and now there is an action in place to help those who have been wronged by the "robo-signing" scandal of 2010.
The 4 million homeowners who are possibly affected by these robo-signing foreclosures have the option of having their individual case reviewed. Some of the most recognizable names in the banking industry are included in this investigation, including JPMorgan Chase, Citibank, Wells Fargo and Bank of America. According to the federal government, there were many foreclosures that were rushed through the system without proper review of the documents.
In cases where it turns out that the lender processed the foreclosure without the proper review, the homeowner that was illegally forced out may get reimbursed for late fees and other charges that they had to pay as a result of the foreclosure proceedings. The legislation does not specify a maximum or minimum amount for this reimbursement.
In Congress, there are many who are critical of this new legislation. For one thing, the banks are being allowed to review their own cases. Some congressional members are saying that there should be an outside review and investigation of the cases as it is inappropriate for lenders to review their own mistakes. However, regulators are saying that there will be independent consultants reviewing the cases in addition to the lenders reviewing their own cases. If there are mistakes spotted in the cases, there will be additional reviews to see if the lender is trying to cover up other mistakes.
Another criticism of this legislation is that the lender will decide how much compensation a homeowner will receive if they have been financially damaged. There are many who feel that the Office of the Comptroller of the Currency, the government office in charge of this new legislation, should either oversee the financial reimbursement given by the lenders or appoint a federal government office to help ensure fair and timely reimbursement payments to homeowners who were unfairly and illegally foreclosed on.
If you think your foreclosure was illegal, call 888-952-9105 for more information on how to get your individual case reviewed. You can also visit www.independentforeclosurereview.com for more information. The deadline to request a review of your foreclosure is April 30 so make sure you get the information you need right away.