Borrowers in the Greater Boston Area May Be Eligible for Money from the National Mortgage Settlement
The Massachusetts Attorney General, Martha Coakley, recently announced that borrowers in the state, including those in the Greater Boston area, may be eligible for payments stemming from the National Mortgage Settlement. This settlement deal was made in response to legal action filed by the Federal government, against five of the major banking institutions in America. Massachusetts will receive a total of $318 million of the $25 billion settlement, of which nearly $14.6 million will be made in cash payments to borrowers who lost their home due to an improper foreclosure. This settlement does not prevent individual states from filing additional lawsuits against these banks based on specific corruption cases. This means Massachusetts may seek further legal action that will provide homeowners even more retribution for improper foreclosures.
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This settlement was developed from a lawsuit filed by the federal government against five major banks, including Bank of America, JP Morgan Chase, Wells Fargo, Citi, and Ally/GMAC. The government alleged that these banks should be held accountable for fraudulent mortgage servicing practices and abuse. The settlement will provide borrowers with some form of relief due to the fact that their home in Massachusetts and the Greater Boston area was improperly foreclosed. In order to be eligible for part of the settlement, your mortgage must have been through one of these five major banks, and your home must have been foreclosed upon between the dates of January 1, 2008 and December 31, 2011. The exact amount of reimbursement for each homeowner will depend on the number of borrowers that respond.
The state’s Attorney General’s office recently mailed packets to borrowers it believe may have been effected by an improper foreclosure. Each packet includes a claim form with instructions, and a list of answers to commonly asked questions. The Attorney General’s office is encouraging people to return their completed claim form as soon as possible, but no later than the deadline on January 18, 2013. If you did not receive a packet but think you may be eligible for a cash payment due to an improper foreclosure, you should contact your mortgage company or the Attorney General’s office as soon as possible to determine if you qualify.