Foreclosure Reviews: 338,447 Cases Slated; That’s Only 8% So Far

Bank regulators say 338,447 foreclosures filed in 2009 or 2010 are scheduled to be reviewed for errors and possible compensation for wronged homeowners, under the so-called Independent Foreclosure Review.
That number includes 193,630 borrowers who have requested a free review and 144,817 files selected by independent consultants from the portfolios of mortgage servicers through May 31, 2012.
The total figure represents only 8 percent of the 4.1 million borrowers who received letters from U.S. regulators informing them that they could receive compensation from “errors, misrepresentations, or other deficiencies in foreclosure proceedings,” according to the Office of the Comptroller of the Currency, the regulator overseeing the process.
Those eligible borrowers have to return their “Request for Review” forms by the end of July.
The Federal Reserve has turned to YouTube to get more borrowers potentially eligible for compensation to respond.
The Independent Foreclosure Review stems from consent orders issued April 2011 by regulators.
The orders required the nation’s largest mortgage servicers to retain independent consultants for comprehensive reviews of their foreclosure activity in 2009 and 2010, to identify financial injury caused by sloppy foreclosure practices, and to provide financial remediation.
The OCC-led campaign is separate from the much more publicized $25 billion mortgage settlement between state and federal authorities and the top five U.S. lenders announced Feb. 9. The eligibility process tied to the settlement has yet to be fully determined.
Borrowers can visit www.IndependentForeclosureReview.com for more information about the review and claim process.
 

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