'Infamous' Postcards Prolong Ordeal for Angry Foreclosure Victims

'Infamous' Postcards Prolong Ordeal for Angry Foreclosure Victims The much-anticipated notices from Rust Consulting — the bank regulators’ paying agent — was suppose to clear up how much compensation wronged foreclosure victims would get for actions taken three to four years ago.
They were mailed out over the last few days to 4.2 million borrowers and have by now reached “infamous postcard” status, as one recipient put it.
Many were expecting payment instead of a postcard.
In a string of sometimes emotional comments to eCreditDaily, many of these borrowers who are eligible for payouts wrote of disappointment, frustration and anger caused by lender actions over the past four years or so.
And now they are feeling victimized again from further delays by regulators in providing more information and rightful closure to a long nightmare.
The cards that arrived in the mail this week offered few details and informed eligible buyers of another wait of four to eight weeks for getting payouts, more details or more paperwork to fill out. No one knows for sure.
Sandra wrote: “It was supposed to tell us how much and when we would get a check. Instead, it says we’re eligible for payment. This info we already knew. Sending cards was a waste of time and our money.”
“I also received the postcard,” Lesley said. “My house was foreclosed on after 15 years. I paid a lawyer a lot of money to try and fight it and still lost. We are now renting and rent is more than my house payment was.”
Many wrote about botched mortgage modification by their lenders. They wrote about bankruptcies, unemployment, short sales and other ordeals that have brought them together as “eligible borrowers” in a prolonged and flawed regulatory process that has yet to make things right.
The Independent Foreclosure Review was launched close to two years ago, but was mostly scrapped two months ago in favor of a settlement with 13 mortgage servicers, including some of the biggest banks — JPMorgan Chase, Wells Fargo, Bank of America and Citibank.
The $9.3 billion agreement is to pay out $3.6 billion to compensate for wrongful foreclosure actions (“deficient practices” as one regulator labeled it) in 2009 and 2010.
The compensation range will be from hundreds of dollars for botched paperwork to $125,000 for the most egregious cases of wrongful evictions. The rest of the funds will pay for other assistance, such as mortgage modifications.
Lynda said she spoke to a representative with Rust Consulting after receiving “the infamous postcard.”
“He verified my household was in the payout system, but could not verify how much or how many banking/foreclosure actions are imposed on our behalf,” she said. “I can count three.”
There is also much confusion. One borrower got a card, but said he had a deed-in-lieu foreclosure in 2007 — not any action in 2009 and 2010, which is the timetable for the mortgage-servicer practices targeted in the settlement.
Yvonne’s notice also said that Rust Consulting would be contacting her within the next 8 weeks for either disbursement or more information — but “that is NOT what I was told 2 weeks ago when I called them.” She was told that she would get the distribution amount in the postcard.
The many comments submitted to eCreditDaily were heartfelt.  The postcard recipients are trying to cope the best they can, wishing others luck with their ongoing foreclosure ordeals and attempting to move on.
Pam said: “I got my card today also with the same lack of information The banks win again… I will not have my hopes knocked down again… will rely on myself and move forward from this Nightmare that has lasted four years, Good Luck to all!!”
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20 thoughts on “'Infamous' Postcards Prolong Ordeal for Angry Foreclosure Victims

  • March 24, 2013 at 10:51 pm
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    If the $26 Billion National Mortgage Settlement has been helping borrowers with their mortgages (1st & 2nd) liens since 2012 along with short sales…why can’t the $9.3 billion Independent Foreclosure Review be the settlement allotment just for foreclosed VICTIMS?????? $3.6 Billion dollars is not enough money to even mend the hurt, loss of money to attorneys & banks in saving our homes…especially when we were suppose to be under a Loan Modification Program & they took our Homes anyway!!!!!!! I lost my business of 25 years from a $50,000 line of credit. My home was paid for and I used my deed as collateral & I can’t believe I lost my home in this manner!!!!!!! I deserve a million dollars from the hurt of the media, newspapers, gossip in the community and the embarrassment was enough to jump off a building.!! To this day…people know my name because of my foreclosure being on the news & in the newspaper. Building my business back has been a “BEAST” but I’m not giving up. I’m praying that the proceeds from the settlement can provide me with WORKING CAPITAL.

  • March 25, 2013 at 10:00 pm
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    When a past homeowner whose home was in foreclosed on during this time who receives the payment will taxes be taken out of it already or the person will receive the actual amount they are suppose to receive?
    The foreclosure amounts are being determined in different catagories of what was unlawfully done.
    When I called Rust Consulting Inc they could not answer my questions.
    We will have to claim this income on our 2013 taxes.

  • March 27, 2013 at 8:55 am
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    The fucking postcard…..WHY BOTHER? 4.5 years of hell and what will I get? A couple hundred bucks? Makes no sense whatsoever. They call off the reviews then put you into a “slot” that will determine your payment? I fail to see how we can be placed in a payment “slot” if no one’s reveiwing the file. Sooooooo, what I’m getting at is, this is a joke, a final insult, salt to the wound, etc, etc.
    Send the goddamn check already, stop yanking our chains. #TOO LITTLETOO LATE

  • March 27, 2013 at 10:22 am
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    If the reviews have gone on any NO ONE has gotten a payment except this consulting firms this is ridiculous! GMAC was our servicer and want to lump our payment for their errors in to their bankruptcy.
    Like so many things with the Fed and their third party consultants this is just WRONG. Save your postcards and do some real work in an efficient manner! Rust is getting paid out of this too!

  • March 27, 2013 at 10:26 am
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    According to the documents in this link it would seem the most a victim would see is $4k …we’ll see who gets the max and who get a few hundred bucks.
    The banks, lien holders, and realtors got paid the first time around for all of their “practices” and we lost our home, business, and had to move some where we could then afford because in being transparent with the bank and making partial payments up until our last month as agreed upon was not enough.

  • March 28, 2013 at 11:55 am
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    I know we are going to get a couple of hundreds. Just imagine 4.2 millions people will get pay out of 3.6 billion. The people who are getting the most are those who were serving in the military and lost their homes. Now my questions is: What about the 5.7B? My loan was with Aurora Loan Services, and they sold my loan to NationStar. I called NationStar and they don’t know anything about it! So I’m wondering how we will be notify of how this money will be disbribute?! I didn’t lost my home because I never gave up! After 3 years I’m still fighting!

  • March 28, 2013 at 9:04 pm
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    these guys need to stop playing.these darn postcards do not mean a thing to us give us our darn checks its ours anyway .these people have hurt to many family .and forced us to live in places that we really did’nt want to .but did they care h no .once again thanks for nothing IFRS.

  • March 29, 2013 at 2:05 pm
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    Just from reading all the legal documents I believe the payments will break down like below from higher payments to lower. Really nobody knows what were getting and what category we will be placed. With the money arleady sent to Rusk for payments I believe people that lost their house will be paid more generous on the 3.3 bill and the people still fighting the good fight will get smaller amounts and the remaining 5 bill is to help them.
    1 – Military who lost their home
    2 – General Population who lost their home
    3 – General Population who is still figting the good fight
    4- Gneral errors, interest rate, etc.
    Either way it’s a bad deal for all. I lost my job in 09 filed bankruptcy got put in a chapetr 13 due to wife’s income, my house which was included and paid throught the trustee for 6 months. on the 7th month US Bank petitioned the judge to foreclose even though we were in an active bankruptcy. Judge granted the foreclosure even though my attorney fought this vicously. They basically said we could not afford it due to me losing my job and took it. So no job and got forecloded on – happened so fast, pretty much in disbelief, my daughter was 2 years old at the time.

  • March 30, 2013 at 8:00 pm
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    Part of the reason why everybody is covered and not just those who lost their homes was because there are millions like me that suffered a foreclosure action (in 2009) but the bank never actually took the house. They slapped a forclosure/eviction warning on my door so I moved out, as soon as they saw it was vacant they suspended the foreclosure, every missed payment is now listed as a late payment on my credit report. Forty two of them. My credit score is actually in negative numbers by now. And it was scheming and lying and theft on the part of Chase that triggered this to start with. In short, whether you lost your house or not you were affected by their crimes. And the very same day I got the postcard telling me I had compensation coming I also got served with a suit for 132,000 in principal, 36,000 in back interest, 6,675 in escrow payouts late fees and penalties etc. on my behalf, an estimated expected 20,000 in additional expences during the pendency of the suit, 9% interest on all of the above, and because the house will not actually be taken before the settlement money is distributed I can expect way less than half of what I would have gotten had they taken the house years ago. And my state is a recourse state so they can take the house and still win the suit, the only protection I have from this is filing chapter 7. Losing my car which I have paid on for 4 years in June, as of now I am planning to liquidate everything I own in the USA and permanently leave this country, it has become a creditocracy run by plutocratic thieves and their evil corrupt henchmen in government which they have bought and paid for, with the enabling by codependent GOP voters who see all forms of tax as theft even when the banksters stole the keys to the treasury. The USA has become the global evil Islam loves to talk about, for different reasons, but every bit as evil anyway. The only way to win is not to play.

  • March 31, 2013 at 1:30 pm
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    They steal our homes and then give us no information about how the banks will make it right. They have to better than this!!!

  • March 31, 2013 at 9:31 pm
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    We can be assured that whatever amount is received–$200 or $10,000– the IRS will consider it income and will expect (as usual) more than their fair share. If any of us get money from this, I must recommend planning to send about 30% of it to the Feds. Never mind the 50k down payment we’ve lost or the lack of a home loan modification because we were turned down, or the fact that I cashed out 12 years worth of my teacher’s retirement to try to save my home. With 16 years in public education, it’s as if I only have 4. I’ll never be able to retire. Rent is higher than a mortgage. SunTrust STILL takes $219 per month from our account for the HELOC on this worthless pile of sticks that has robbed us of our financial independence.

  • April 4, 2013 at 9:49 am
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    This is just a game and we must keep playing the game. I have been dealing with my mortgage issue since 2009. I have begged BOA to do this modification so i can pay my mortgage. They tell me everytime I talk to them that they can not accept a payment from me because of the foreclosure status. I orginally got behind on my mortgage by three months because of being laid off of work due to lack of work. Thanks to boa I am now 28 months behind on my mortgage. I still live in my home and I will always live in my home. Its a game and I play by their rules.

  • April 4, 2013 at 8:18 pm
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    Rust consulting told me today that checks will be issued in batches and the lady I spoke with told me she did not know how the batches were determined but everyone that is eligible will have a check by end of June. I was with HSBC and for 6 months tried to do a short sale but everything my attorney sent to them somehow was never received (even though everything was sent certified and we had receipts) and then the house went up for sheriff sale and we lost it. Does anyone know what category this would fall under? The lady at Rust told me that she could not give out the category information.
    I agree we need to ban together and stand United. Our credit is ruined, families have been torn apart and just the stress and anquish we all endured for years can never be given back to us so we should at least get compensated for pain and suffering.

  • April 5, 2013 at 9:08 pm
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    Fortunately, I never lost my house but it was posted for foreclosure sale in 2009. I was one of the lucky few who had their mortgage modified. the question I asked was who is determining the modification is correct? I had $17k in equity and was only $6k behind in payments. The bank “refinanced” to the outstanding principal balance then added a 2nd lien for 10k which as far as I can tell was wrong. Who is making these determinations? The banks themselves? And, the only people getting ahead in this who ordeal are the lawyers, the lenders and Rust Consulting.

  • April 7, 2013 at 5:29 pm
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    Please excuse me for what I’m about to say, but… GOD! I HATE THESE MOTHERFUCKERS!!! And I mean all of them, the servicers, the government entities, the bk courts, the assholes that bought MY home at auction, my old neighbors who could barely contain the looks of disbelief/ gossiping behind my back when I explained the foreclosure wasn’t right & we were being screwed. And as angry as I am now, I fear, is nothing compared to the anger I’m capable of in this specific arena. Because as mom I stuffed it down, didnt allow myself the luxury of the hate and anger my family was falling apart!
    The actions of these sons of bitches split of my family of 5, made me have to send my 2 older sons to live with my emotionally abusive mother, when unexpectately our UNPOSTED home was sold out from under us at auction illegally while I was still in negotiations with lender rendering us homeless. It turned all my promises to my kids into broken ones & me into an unreliable liar by extension. It changed who my sons have become. Instead of the lighthearted, confident young men they used to be, now there’s suspision, skeptisism & even fear in there eyes. There’s no hope, no joviality, no more excited anticipation regarding what the future might hold. My 2 older boys were in their late teens @ the time of foreclosure, the time in a young person’s life when if they’re at all vulnerable to schizophrenia it would happen. Did I mention my wonderfully sensitive middle son, the one my mother apparently zeroed in on while they where under her roof, is now exhibiting schizo typal behaviors? And my geniuous, always on the deans list, oldest son who was making great strides toward his B.S. with a minor in Math is now floundering, slinging burgers & no longer going school b/c where we now have to live is too far to drive to his original college and his transfer to the colleges sister school is being blocked, even though they are both UC CAMPUSES. Then there’s our beautiful baby, now 15, who’s had to endure more than any kid should have to, bouncing from school to school due to lack of consistant living arraingements, I suspect he’s a full 2 yes behind grade level if not 3, having been exposed to my husbands & my vicious & cruel fighting that developed in the first year as a result of our own fear, disbelief & stress & rediculously tight living quarters…I could go on & on, like how my 48 y/o husband’s severe cardiac condition, once able to be decently managed with meds, now has his cardiologist pushing us to accept the fact that we now need to consent to get on the transplant list. All of this AND our lender broke 98% of the “rules” described in the old remediation framework AND still I’m absolutely confident that my family will receive its $250.00 check sometime later this Fall.
    Just b/c I don’t think I can take anymore, I’m making every effort not to focus on the check amount, anything less than the maximum is unacceptable, but instead I am focusing on the new remediation framework yet to be published and starting to organize all the receipts, documents, timeline of this nightmare, and arguments for why we should have been included in every possible bracket ( except for service members) because like the majority of us I’m sure their solution to this will leave me swithout getting my pound of flesh. And that is completely unacceptable, my family, our family’s deserve better.
    Thanks for letting me rant & good luck to all of us “Davids”. Now, i want me some of that Goliath & I won’t stop until I get some
    .

  • April 8, 2013 at 11:48 am
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    @ Angelique ~ our story absolutely broke my heart. I have read so many stories like yours and by all means let me tell you….those Son’s of Bitches of bankers, their bullshit lawyers (who have to be as crooked as the day is long knowing what these banks have done and are still doing) our politicians for taking their kick backs from these banks and lets not forget our judicial system! I agree with you, I feel that the pay-offs are going to be next to nothing adding more insult to injury but what can we do? Not a damn thing because no lawyer or judge will side with us. We are peons compared to Corporate America! Ugh, I could go on and on but it won’t do me any good.

  • April 8, 2013 at 11:49 am
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    @ Angelique I meant to say YOUR story not *OUR story. I get to typing so fast that I misspell things at times. lol

  • April 8, 2013 at 5:15 pm
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    If you haven’t joined the foreclosure forum, you should. It is an easier way to keep up, plus members are posting any article they find that is even a little informational. The address is:
    foreclosurevictims.freeforums.org

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