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For Most Homeowners, Gov’t Foreclosure Deal Brings A Few Hundred Bucks

Bank regulators finally announced the details of a settlement with the biggest banks over foreclosure abuses. Most borrowers will receive $500 or less. And the details are confusing.

The government’s largest effort to compensate victims of the banks’ foreclosure practices is finally sputtering to an end. But for most of those eligible – nearly three million borrowers – it won’t be much of an ending: they’ll be receiving a check for $300 to $500.

Payments to Homeowners

Regulators are dividing $3.6 billion in payments among 3.9 million homeowners. 2.4 million homeowners are receiving $300.

 

Source: OCC, Federal Reserve

For many borrowers, it’s a likely an unsatisfying end to a process defined by years of frustration. If you were a homeowner in danger of losing your home at the height of the foreclosure crisis, chances are you soon discovered that your bank’s mortgage servicing division was a mess. They were hard to reach, gave you misinformation, lost your documents, and generally screwed things up. In some cases, homeowners were even foreclosed on by mistake.

In 2011, federal bank regulators announced a process to right these wrongs. The Independent Foreclosure Review had a simple aim. If a borrower had suffered “financial injury” (the emotional toll would not be considered), then the review would make it right. Compensation payments would range as high as $125,000.

But for borrowers, it was yet another descent into confusion. Just as so many had waited months and often years for an answer from their servicer, homeowners sent in a pile of documents and watched and waited as 2011 turned into 2012 and then 2013.

The review process ended with a whimper early this year. The process was such a mess, regulators announced, that they’d decided it was better to call it quits. No more trying to determine each borrower’s “financial injury.” The banks would just cut a check for millions of homeowners who had been in foreclosure, regardless of whether they were wronged. 

But even this solution had its complications. Not all borrowers would get the same amount. Instead, regulators said they would break the four million borrowers into various categories. But regulators didn’t announce what the different categories would be or how much borrowers might be receiving. Borrowers would just have to wait a little bit longer.

On Tuesday, three months later, the regulators, the Office of the Comptroller of the Currency and the Federal Reserve, finally released a breakdown of the categories.

Homeowner Categories

All four million homeowners will fit into one of the categories below. Within categories, payments range due to whether the borrower filed a complaint and/or the foreclosure was completed by the end of 2011 (we show those ranges in parentheses).

 

With the exception of the “Other” categories, this chart uses regulators’ precise wording. They have offered no more description of exactly what situations fall into which categories. The “Other ($3,000 & Up)” category comprises a number of others. For the full list of categories, see the chart regulators released. Source: OCC, Federal Reserve

Most borrowers will receive little. To be eligible, a borrower must have been in some stage of the foreclosure process at any time in 2009 or 2010 and had their loan handled by one of the major banks covered by the agreement. That’s about four million borrowers. Most of them, about 2.4 million, will receive $300.

Borrowers who took the time to fill out a complaint about their bank receive a small bonus for their efforts: Most of them will get $500 or $600. Only about 11 percent of eligible borrowers filled out complaints, a low response rate both consumer advocates and the Government Accountability Office attributed to borrower confusion and poor outreach by regulators and the banks.

Typical of the subpar communication regulators and banks have had with homeowners, it will be hard for homeowners to divine why they were put into a certain category.

Many borrowers facing foreclosure dealt with their servicer over months or years, and the errors were legion. Borrowers will likely argue they could be put in several of the regulators’ categories. It was common, for instance, for borrowers to be rejected over and over again for a modification before receiving one. Does that mean such a borrower will be receive a payment based on the denials or the approval? OCC officials have said that borrowers who fit in multiple categories will receive a payment based on whichever category brings the highest payment.

It’s also hard to understand some of the differences in payments. In some instances, homeowners who ultimately lost their home are compensated the same as those who did not. In other cases, they reap far more.

At least 1.6 million, or 41 percent of the total pool of homeowners, ended up losing their homes. The data is based on information as of the end of 2011, so the actual number is likely higher, because it doesn’t account for foreclosures in 2012.

Another example of the confusion: The categories are broken down into types of “possible servicer error,” but all possible servicer errors are not created equal in regulators’ eyes. For instance, a borrower who was denied a loan modification and lost her home to foreclosure (a pool of about 370,000 borrowers) will receive $3,000 or $6,000, depending on whether she submitted a complaint. But in cases where the borrower applied for a modification, and the servicer never made a decision and then foreclosed (196,000 borrowers), the payment could range from $400 to $800. If the servicer never even began the modification process and foreclosed (568,000 borrowers), the payment ranges from $300 to $600.

Asked for the rationale behind these decisions, an OCC official explained that regulators deemed the potential for error higher in cases where the servicer actually denied a request. It’s possible, for instance, that a servicer never made a decision because the borrower did not send in the proper documents. Or maybe the borrower never responded to the servicer’s solicitations.

Borrowers waiting for their checks can only hope they suffered the right sort of servicer error.

“People who managed to get far enough along in the [modification] process, many of them will get a decent payment,” said Alys Cohen of the National Consumer Law Center. “But people who suffered servicer neglect clearly are not getting compensation for the harm they suffered.”

Regulators say the first checks will be sent to borrowers at the end of this week, and that almost all payments will have been sent out by the end of April.

Meanwhile, homeowners, let us know what you get in the mail and whether you think you’re in the right category.

Stupid people deserve nothing.

There has NEVER been a foreclosure when the buyer paid for his house in cash.

And, if you don’t have the cash, you should be smart enough to know you’re using someone else’s money ... and they expect you to honor the terms under which you borrowed it.  And if you renege [“why” is your problem not theirs], you need to be punished, not rewarded.

Unfortunately, these morons survived the recession ... and they’ll be back.

Actually, There has been a home foreclosed that was paid in cash:

“Lauderdale Man’s Home Sold Out From Under Him In Foreclosure Mistake”. Bank of America Foreclosed on Jason Grodensky who paid cash for home.

“Bank of America cuts check for Estates Couple in mistaken Foreclosure Case” Warren Nyerges paid cash for his home.

Man buys house with cash, Bank of America tries to Foreclose.
A Sacramento Man nearly lost his house he paid for in cash when BofA tried to sell it.

This is for Blackbeered - if you think you are so smart, then why do you make a statement that is blatantly incorrect? You seem to be able to point fingers without knowing the entire series of stories of those who have gone through and continue to go through the foreclosure process.
In addition to the aforementioned, if the banks are all correct, then why did the majority of them take our tax money, money we, as American citizens who work very hard for, and squander it on bonuses to their corporate leaders. Why didn’t they ALL pay it back to the government, or better yet, give it to its rightful owners - the citizens of the United States?
You call others “morons” when in reality, you seem to be more of this term than those who are going through the foreclosure process.
My advice to you is this - if you are so without this “sin” then you may cast the first stone! But I highly doubt that you are!

This is what government settlements bring the people?  Why do we have a government?  Banks get billions, trillions if you include the Feds emergency liquidity, home owners get the blame, even by their their fellow Americans.  Can’t you see they are trying to divide us.  Blame your neighbor not the banksters, not the government, not the politicians.  More trickle down hoax economics of cutting taxes on the rich and cutting benefits for the needy.  What do you think will be left of the US when the corporations and the 1% own everything?  Who’s buying the foreclosed homes?  Investors and corporations, that isn’t a housing recovery that is servitude.

First, did anybody expect a different outcome?  You’re talking about a class action, essentially, which are only ever good for a lawyer.  It’s also a settlement, which means they got to low-ball everything for the sake of making the problem go away.  And it’s money coming from organizations whose entire purpose is to cling to as much money as it can and never let it go.

The surprise is that the money is going to be a significant portion of a month’s mortgage payment and not, say, the price of the stamp used to mail the check (assuming people still do that).

Blackbeered, it’s a nice try, but surely you realize that contract law suggests that either the bank was obligated to not violate the mortgage contracts they signed or that the client had no further responsibility for the bank either due to breach of contract or because the contracts were lost.

Or maybe you’re just shooting your mouth off because it sounds like blaming the consumer is cool.

Here is an idea (and no, I’m not being facetious, though I wish I were).  Everyone who receives a check for $300-500 should throw that money in the pot and try, collectively, to buy a congressman or senator who gives a crap about what happened to them.  In DC, money is the only thing that matters today.  So, let’s all buy a congressperson.  Doesn’t matter which party or wing.

Since money is the only thing [they] love, money is what you shall receive.

I won’t be getting any money, despite losing a house in the requisite time period, because my servicer is not on the list.  Tough break, right?  Still, I will pledge $500 to get this show on the road.

Buy a congressman.  It’s the only way.

Hold on a sec…. 

Why if your house is foreclosed on should you get *any* money??  I thought a mortgage was a ‘loan’ and that if you don’t pay a ‘loan’ back - you don’t get to keep what you bought.

So confused.

What’s also so funny is people who don’t even have a foreclosure, who try to defend people with foreclosures. You do realize that your putting money in your neighbors pocket right??  The ignorance of the liberals is thick.

Sean,
Millions of those families who have been foreclosed on were placed in their predicament by predatory lenders (e.g. Chase, Wells Fargo, Countryside, etc.) through no fault of their own. Millions can and have tried to pay their mortgages, but these lenders refuse to take their payments. In light of these illegal and immoral acts, your damn right the ones foreclosed on rightfully deserve money, and a lot of it. In fact, each one deserves the entire amount of money previously given in each and every mortgage payment submitted.
Yes, a loan is something you must pay back. This is not even in contention. Those foreclosed on only ask for the right to actually PAY their mortgages, but the banks refuse to allow this. Don’t you think the banks should be forced to take those payments instead of playing the con artists game of foreclosure? Think twice before you answer, for you may find yourself in the same predicament in the future.

First Blackbeered and Sean If this article has nothing to do with you WHY read and Comment? Did you do it to just to be rude and belittling? If you have no idea of the process and the hurt and heartache people endured STOP. You should consider yourself lucky to not have had to go through this.Millions are nowhere near deadbeats. I do not agree with the payment distribution. The people that did the modification early on suffered way more financial loss than those still in their homes. All that we asked for was to MAKE our payments. You have no idea of the blatant deceit. To send someone to my home when I was current on my payments and have them sit in my home tell me how beautiful my home was and proceed to tell me in order to refinance MISS PAYMENTS. or they would never consider it. Make us look like complete buffoons sending paperwork containing our entire existence only to be told they lost it? Not once not twice numerous times. To string us along knowing they were NEVER going to reduce payments. AGAIN I was not late on my payment when the BofA rep showed up. I find it to be odd that I live in a overly predominate white area and have all my life and am sure others in my neighborhood had Bank of America YET an African American female showed up at my home on a Sat morning without making any previous arrangements with me? 99% of the time the only black females at my door were my sisters.  We all have lived in this suburb of Chicago for 30+ yrs How was the rep able to tell me about the area I lived in all the way to what the school district was? What a crime that as a single mom of one I bought my home on my own with a 20k down payment not one dime of child support lived there raised my child there from preschool to high school & after and had my home stolen and was forced to move. Please stay off of this site if you have nothing positive to contribute because that is what this site is about. Thanks to Propublica and the people on here I made it through one of the toughest times of my life. And to everyone else THANK YOU!

Sean, if you read back in the series, you’ll find that the banks (a) largely pushed clients into excessive loans using various unsavory techniques, (b) discarded the contracts, which should have meant they had no leg to stand on and were owed nothing, without the ability to prove it, and (c) had signature machines batch-foreclose on clients that were heuristically sort of guessed as being people who might eventually miss payments.

For those keeping score:
- The first is an unfair, predatory business practice.
- The second is an unsound business practice that proves negligence.
- The third is mail or wire fraud, a Federal crime.

As I mentioned earlier, if the bank (which has all the power in the mortgage contract) chooses to play fast and loose with the terms of the contract for its own benefit, don’t you think the other party deserves consideration?

After all, try telling your bank that you think you’ve paid enough, that you don’t think you need insurance, or that you decided to stop sending them checks because you don’t think they’ll uphold their end of the bargain, at some undetermined point in the future.  Should they just take it?  Then why should anybody else?

Paul, I was (am) part of this process.  This settlement is a crock.  The original settlement was for people whose homes were foreclosed in 2009 and 2010.  Paperwork was sent out at the end of 2011 with an August or September, 2012 closing date.  That date was extended to December 31, 2012.  Upon closing of the window, approximate 452,000 people had submitted paperwork for the independent reviewer to process.  Part of this settlement was compensation for equity lost due to the mortgage servicers’ errors (fraud).  I lost my home in October, 2010.  JP Morgan Chase (and others) had announced a moratorium in foreclosures that would last for a couple of months.  I was in the process of making arrangements to bring the mortgage up to date.  I called them several times in the two weeks leading up to the foreclosure.  The day the foreclosure was originally scheduled, I called them and they told me that they had agreed to postpone the foreclosure.  That same day, they foreclosed on me.  I had approx. $100K equity in the home.  So, they lied about the foreclosure and they went ahead and foreclosed on me and others in spite of their public pronouncement to halt the foreclosures.  Coming back to this settlement, the original settlement was for people to recover the lost equity they had due to the errors (fraud) of the mortgage companies.  Out of the blue, they announced this “agreement” that changed the terms of the original settlement.  Instead of 452,000 people participating, the number was upped to 4 million.  And poof, there went the requirement to make people good on the equity they lost.  Oh, and there is no challenge available.  This “agreement” is final.  The Fed and the OCC have signed off on it.  I am pissed as can be!!  Screwed by the banks, screwed by the “watchdogs”.

@AdriAnne: I wouldn’t let those like Sean and Blackbeered who post antagonistic comments get under my skin - likely they’re either people with nothing better to do than stir up crap or they’re just jealous someone - anyone - may get something they’re not entitled to - most likely the latter.

Propublica has done such a thoroughly magnificent job of reporting on the foreclosure crisis - its causes and hows and whys to the extent that if the truth hasn’t sunk in by now for some it never will - so I wouldn’t waste a drop of emotion on anyone still ignorant enough to blame the foreclosure crisis on the foreclosed homeowners - or insinuating that those who were foreclosed deserved it because they were trying to get “something for nothing”. The word “mindless” comes to mind when I see opinions like those of Sean & Blackbeered - people sooooo incapable of comprehending even basic common sense and willingly line up in droves to cut of their dam nose to spite their dam face - then call it “voting”.

Whatever happens in all of this one thing is glaringly clear - the people of this country are on their own because a line has clearly been drawn in the sand that even a blind man can see - ethical business practices are a thing of the past - and thanks to the “gentlemen” in Washington - only we “the people” will be distressed by its demise.

@Kelli Kobor: I’d be willing to put my $500 in the pot - how about electing Elizabeth Warren to Congress?

Before the NON-foreclosed readers act as judge and jury they would be wise to reveiw their own mortgage documents.

Especially if those documents were created before 2008 and if you had Countrywide as your mortgagor..You have a better than 90% chance your mortgage is fraud because BofA did not/has not got legal assignment of mortgage from Countrywide to BofA. I highly recommend you to go to your county records dept and see what is legally recorded.

Most of us never look at our mortgage documents after we buy our homes. Unfortunately for millions of people they did not know how bad the document fraud was until they got knock down by the crimes of the banks.

The financially sound people can judge all they want. May you NEVER have to go through the horror of foreclosure because I am confident you will not survive it. I know this by the simple fact that you show no compassion and huge judgement and mean words to support your ENORMOUS IGNORANCE.

My heart aches for all of us who experienced this mess. To all my foreclosed upon friends I hope you someday find peace and happiness again. To the Nay Sayers you have my condolences!!

I say we elect Elizabeth Warren for President and I’d go in on the $500.
Now I am off to my mailbox to see if I can go buy some lotto tickets if I get $500. I think my chance are better winning in that “pot” than this bankster settlement!

hold on, i was foreclosed on and i never missed a payment. but when i called the bank they told me how much i had to pay to keep my house which i was willing to do to get them off my back. i asked the guy i was talking to for a break down of the money they wanted me to pay which he faxed to me i read it over and called him back after that they refused to talk to me. i had to take them to court with stacks of documents and proof of payments. i fought to keep my house but it still cost me. in other words i paid to keep the house i was paying for in the beginning. so until you have been in someones shoes and know what’s happening you should keep your thoughts to yourself.

Well said, Shannon.
It is hard to comprehend (in this country) that this sort of thing can happen to homeowners and that the banks and our government created and continue this Fraud, and are getting away with it…and with enormous profit to boot. So many people really do not get it unless they or their family has been through it. They are so completely ignorant and can’t fathom the truth. so that is why they make such asinine remarks and comments. I have lost all confidence and respect for this government, to me they are all puppets being controlled by Wall street and others who can. From all the research I have done on this topic for over 2 years now it is shocking to learn how people in power are so addicted to the power and greed and how this is destroying America. The way this government operates, how can anyone make a real difference around so much deep corruption?

I really find it hard to believe Not one banker served time but they did exactly what Bernie Madoff did but on a much larger scale.  I somehow knew if the banks did this to Our Service People and also used their own employees We did not stand a chance. I went through 1. Hamp/Hope 2. 2010 filed my own report with the OCC 3. Paid 250.00 for remediation the CEDA 4.Hardest Hit 5.Independent Foreclosure Review 6.Home sold from under me 2011. The Bank does not have enough money for the mental, emotional and physical they put me through and the heartache they caused my child and loved ones when I spent 3 yrs withdrawn and depressed! My intention was not to become a millionaire or get anything I did not deserve. I proved myself time and time again. The breakdown of the money almost put me back in that dark place of the unknown yet again!  Every time I see BofA stocks go up , see another high level executive get million dollar bonus, even to see a BofA commercial portraying that they care about their customers sickens me to this very day! The thought of some guy marching around my home taking pictures while trying to celebrate my only chiIds high school graduation I want to give up because I just can’t give BofA another year of my life I gave them 3 I can’t get back and have nothing to show for it! I would be more than willing to give Elizabeth Warren and Propublica my portion! They only bright light we have! I know because I sent correspondence directly to the White House and….Yeah Nothing!!!!

We all need to revolt against the banks and our government to take back our country, or nothing will be done to stop the horror that those of use who have gone through and are going through with these damnable foreclosures day after day. If we don’t…well, we only have ourselves to blame, for no one is going to help us get what we truly deserve - Justice!
To all those who have gone through what my family and I have and continue to go through - DON’T GIVE UP! That’s just what these thieves want! Keep fighting and never give in to them or any of the politicians who support them! If we give up, then our children and our children’s children will not have any form of a good life. If you can’t fight for yourselves, then fight for your children’s sake. Remember - they are going to inherit this abomination of a system unless we do something about it NOW!
God Bless!

Our home was foreclosed by IndyMac/One West Bank on May 26 2011. We were in a BK13 for the third time because our BK attorney didn’t get the paperwork in on time, so the trustee chose to use the third filing rule: BK code 362 to foreclose. We had a Freddie Mac Loan Mod paid 2 payments and when attempting to pay the third payment we were told we were denied due to a Notary form (which was included in the packet) was not signed by the notary (according to the notary of 10 years and our lawyer it was an illegal document in ca.) .Although the notary did sign and notarize the California All -Purpose Certificate of Acknowledgement. After our home of 17 years was sold at a foreclosure auction I contacted the AG of our state and they contacted IndyMac One West Bank who contacted us and told us there were ” errors re our loan, we would get our loan mod back and they would rescind the sale.” Well after about a month of stalling we were evicted in court from the flipper who bought our home. According to the emails we have the bank never contacted the flipper to rescind the sale although in the emails it states: “to be patient we are working with the buyer to recsind the sale”. Brazen Lies. The problem is they get away with it and they know they can. If there is an effective way to get Real Justice we are all in. In the mean time, I share what I have learned with the uninformed. We have been through the ringer like all of you and my heart goes out to you because we’ve definitely been there. We are renting now and are continuing to heal and know we are not our house. We simply wanted to pay our mortgage.

I feel sorry for the people as I read these stories. I to was foreclosed on in March of 2010, after working hard on a modification with JPMorgan Chase, did the the three trial payments and the works, but they then came back and said the they had not received the documents that I faxed on more than one occasion and I was also in the midst of a chapter 13 as I had taken 20% loss in pay due to the economic downturn. This was just a total ripoff by the big banks plan and simple!!!

Blackbeeredn can I sell you a home and screw you over and punish you for it. Oh wait you all ready agreed great!. Lets keep in touch ;). Oh by the way it does not matter how you play the cards being screwed is being screwed idiot. Just a theory, you have done your fair share of screwing people over in your life and once had top pay the piper and cried all the way home that day :(

My wife and I were told…“We don’t want your home, we’re behind processing your loan modification and once that is done, you can start making your new payments!”  Well, I’m back to work, here are two payments…“NO…don’t make a payment or we’ll have to start the process all over again!”  Then the Notice of Trustee Sale…I called Wells Fargo EVERY DAY…and being told “Don’t worry, its’ just a procedural thing, we’ll rescind (cancel) the action before July 21st (sale date)  The week before, I was on the phone with Wells and they wanted more updated pay stubs…July 20th, they told us, “we’re not going to take your home”...July 21st…“Your home is GONE!  You should’ve made your payments”...

Has anyone received a payment in the mail yet? If the supposedly mailed the $300-500 checks Friday April 12 one would think we’d have reports by now…3 days to mail!

Nothing on my end, Shannon! In all truth, I think this is just another piece of fecal matter thrown our way. An appeasement of sorts, which is useless in both the short and long run.
If I actually receive anything, I will post it, but do not hold your breath!
And just to add to all these comments - my mortgage was with JP Morgan Chase and they are even worse than the majority of the other banks in this arena (but in the long run, that’s not saying much).
I wish everyone, but the naysayers, much luck and future happiness! We all deserve it!

I received my check yesterday and it was for $800. I was not behind on my mortgage and I was unlawfully foreclosed on. Countrywide the original servicer of my mortgage repeatedly denied me any assistance in stopping this illegal forclosure, ultimately Bank of America took over the loan and I lost my home. I submitted all paperwork to have a review done and, no news on what the findings were. I feel that I was intentionally targeted, a victim of the “robo-signing” and now I suppose to take this $800 check and do what with it????  Totally confused and disappointed !!!!

Why not contact Sen. Elizabeth Warren? Living Lies website today is reporting “she has it right” regarding the IFR.  Also, good idea: Lawyers could file an action under Freedom of Information Act to obtain any information found by the IFR re our loans. I for one would love to have that information to use in court if needed to prove the Bank’s Intentional Fraud.

Kendra,

Keep the check! Even though it is peanuts in compensation - don’t be foolish and give it back! Take your kids out and buy them something nice with it or just use it on yourself.

Check out Senator Warren’s website and the Living Lies website. Marie has a great idea! I for one would be very willing to go after all these thieves, so if anyone wants to go in on this, please keep me in mind!

I sued Wells Fargo, I opened a complaint with the OCC and I still lost my home. WF kept running my husbands credit with a “HARD CREDIT” every month which made it look like he was trying to get a Wells credit card. His credit dropped 80 points.The OCC said WF said they were allowed b/c we had a home loan with them. NOOOO, they weren’t allowed but OCC said they can’t do anything about it. EVEN the Judge told them to STOP-they didn’t. I lost my home to them b/c they kept changing the name of who owned the loan.
Haven’t gotten my check but I’ll bet it’s $300! I am angry!!!

We received $500 yesterday. Not payment for for the ignorant commenting above - compensation. We did get behind (loan sold to countrywide, then bofa) but we brought our loan current. They then lost that payment, gave us rate reduction and proceeded to send late notices, rack up fees and destroy our credit for 6 months. When we called to straighten it out we were told we werent a priority because we weren’t technically behind on our mortgage. We actually were foreclosed on and lost our home. Our rent is more than our mortgage was per month. Yep. $500.

As bad as most of us here have been screwed over, I have feeling I’ll be getting $300 only. Does anyone know their procedure? I only want to see what check is to get even madder- haha!
My last name starts with a T so I wondered if these smaller checks are mailed out by last name 1st?

I think the longer you wait the better? Seems lower payments are being sent first. Our last name starts with L.

Have not received a check!  It looks like we are in the 500.00 category.I don’t think there is a procedure for remitting checks. Should we be surprised.? Last name begins with M

Husband thinks we’re in $31,250 catogory which would’ve been double if I filed complaint- I would’ve but never got info- THAT was another lie. I tell him,“I love you, honey, but when you dream you dream big!” They did foreclose during bankruptcy. We had to sue to stop it. They ruined his credit ILLEGALLY. But… Wells decides who gets what so I doubt we’ll get much.
Diane- let me know when you get. This shows that just b/c I haven’t received doesn’t mean it’ll be bigger.
Is there anyone suing back?

Well I got a check today $2000 although I fell into the 24k! category! I filed a grievance with the OCC before the IFR was even a thought on the low end it should have been 12k! Holy cow I put 3500.00 in flooring alone before they took my home. I spent 250.00 for remediation so fed up with this they knew EXACTLY what they were doing! The categories were BS and the banks win again. The letter attached to the check says You cannot contest this amt!  You may continue to pursue further on your own! Why because they know the amts are so damn unfair and unjust!  I have not cashed or deposited the check yet! I wanted to see how others went abt it So please let me know!!!!!

No way was I paid from the right category. Chase foreclosed on me and my wife while she was serving in Iraq. We were protected by SCRA. I got my check in the mail yesterday for a whopping $300! Just adding salt to the wound!

AdriAnne, what state are you in?

Mike did you receive a letter in the mail this past weekend from your lender stating that you were wronged IAW SCRA? Just wondering, because I did. I states that my check will be certified mail as well. So, I called Rust today and they confirmed that my check will infact arrive via certified mail. Pretty sure that I fall in the $125k category

WOW Mike! I am so sorry. I think this is just going to make people madder and madder. WHERE can we go? WHO can we talk to? I thought that filing complaint w/ OCC in 2010 about Wells running my Husband’s credit every 30 days would get me help but it didn’t.
Tom, at least it seems YOU may get the right check.
So, it seems that it doesn’t matter how much since now bigger checks going out. IT’S ALL A LIE!
QUESTIONS:
1- Were y’all in Bankrupcy? - I was
2- What State are y’all in? I’m in GA & no check yet. (Isn’t Rust in MN?)
3- Did everyone here lose their homes? - I did

Sorry, last question?
Did the check or paperwork say anything about paying taxes on this? I read where we have to pay taxes. Has anyone read that?
So for Tom, they STOLE his house, broke the law and now HE has to pay taxes on compensation? You don’t when you sue for malpractice so what’s the difference here?

I am the first Tom in this thread.  It seems to me that we should be able to get a class action going on this.  Sure we have potential cases against our servicers, but what about the Fed?  They’re not the government so shouldn’t we be able to sue them for lost equity and agreeing to change the structure of the original settlement?

When I sued, I was lucky b/c my Dad was my lawyer & kept them in court for 3 yrs. The Bankrupcy Judge told me to keep going in State court b/c they were liars but her hands were tied b/c law hadn’t caught up coroption!
I’m on ACLJ email list & follow them & Jordan Sekulow. He fought for part

Sorry- on cell
Anyway, he fights for ppl wronged by Govt.
I think there would be lawyers who would love this case.
How can we get in touch without blasting personal info? I could set up email that people could go to or you could with just a blanket name.
I also think people should cash their checks. I don’t think that it could be held against us like “cashing check means you AGREE with this complete robbing twice of American home owners.

I was denied after making 5 trial payments.  Then, with the help of an excellent attorney, I was put on a second loan mod trial, and ultimately given a loan modification. 

I received a check for $300, not $3,000 as the article suggests the OCC guidelines require.

And, of course, this doesn’t address the bigger issues with my foreclosure, such as the fact that the mortgage was assigned to the trust THREE YEARS late, which is in contradiction with the trust’s guidelines, and the fact that the assignment was done by JPMC as “successor in interest to WAMU” while JPMC, filed in Federal court, in defense of a Deutsche Bank lawsuit, that they are NOT “successors in interest to WAMU”.

All arrears and fees(?) were added to the loan balance. No accounting for this amount was ever provided.

I just had a thought.  Why doesn’t someone set up a fund where people can sign over their compensation checks in support of a dedicated legal effort to go after the banks for their sins, or perhaps a fund dedicated to ongoing reporting and publicity of the banks sins (perhaps a dedicated fund within ProPublica?).

Those who got large checks probably can’t afford to do without the money, but for those like me, who got $300, and really hesitate to cash the check, as it feels like blood money…acceptance that a few hundred bucks makes right for all the gross injustice doled out by the banks (and our government), I’d feel a hell of a lot better knowing it’s going to a related cause.

Love this Idea!
From the comment section of Livinglieswebsite a wise writer writes:
“Do as Stop Foreclosure Fraud is suggesting: Demand your entire file.”
According to the IFR they would not halt private litigation.

“From those homeowners who received a check for the OCC/FED consent order with the big banks:
I Request that each and everyone of us call the General Counsel’s phone # (202-649-5400) and tell them: That far more important to you would be a certified letter from the OCC stating which FED and state laws were broken by your servicer and therefore the reason you were provided the check in the first place. Please help start this chain of requests.”

I gave about eight trial payments that were $200.00 less then my regular payment, when i was denied from the modification. they sent certifyed letter’S (yes multiple) one of denial and other was a forclosure notice letting me know that over $7,000.00 needed to be payed or they would foreclose. I agree that $1,600.00 + a few hundred were my responsibility to pay and would of gladly paid it. I payed the amount needed to save my home( borrowed from familiy)  i would of like the $5,000.00 they wrongfully charged me for. insted i will most likely get the crapy $300.00, so for all who read this and dont undrestand way we are so upset. Just figure 5k from me and about 4 million more homeowners, do the math

Bottom line: If you even ask for a loan mod—-THEY WILL KILL YOU.

They literally go into kill mode…“they” are the distressed debt buyers—-whom the “servicers” are working for.  The situation is literally like loan sharks.

To the idiot “Blackbeered”—-you are completely ignorant about what crashed the economy—-it is the biggest fraud perpetrated in the history of mankind.


The entities foreclosing are NOT CREDITORS.  THEY LENT NOTHING. 

They are DISTRESSED DEBT BUYERS—-NOT CREDITORS.

This is the reason for all the chaos—-the banks are trying to cover up massive securities fraud, massive insurance fraud, massive mortgage and foreclosure fraud.

There was no “lending” or “funding” in the subprime.

IT WAS SIMPLY A TRANSFER OF COLLECTION RIGHTS.

COLLECTION RIGHTS ONLY IN THE SUBPRIME.

This is what crashed the economy.  This is what is being covered up.

Do you REALLY think “banks” would actually FUND all that money???

WAKE UP!!

Fannie/Freddie CHARGED OFF ALL THE NOTES after the repeal of Glass-Stegall (1999-2000) and then MERS was created to facilitate a massive PONZI called “mortgage-backed securities”.

THERE ARE AND NEVER WERE ANY REAL “MORTGAGES” IN MORTGAGE-BACKED SECURITIES OF THE SUBPRIME.
The trusts are and were always empty.

It is because of deregulation that we are being lied to and kicked out of our homes.

THE GOVERNMENT KNOWS IT AND DOESN’T CARE.

Thanks for the information, Marie, but the number you have given only takes you to a very obnoxious young lady who gives the OCC # (1-800-613-6743) for further assistance. She will not take any messages nor will she help you in any manner other than giving out the OCC phone number.
I then called the OCC number but all I got was a recorded runaround of messages telling me to go to the OCC website, which is http://www.helpwithmybank.gov. I filed a complaint online with them, but in all honesty, I do not believe I will receive any assistance from them. This is all one big LIE from both the Federal Government and the banks that control it. We Need To Take Our Country Back and the only way to do that is to revolt!!!!!!

Carie,
You are most certainly CORRECT in everything you have stated, and that is why I keep saying: WE NEED TO REVOLT AGAINST THE BANKS AND OUR GOVERNMENT!!!!!!!!!!!
If our own government is not willing to do anything to stop these thieves, then we, as the People of the United States, are required to form a more perfect union! Our history demands it and the People deserve it!
Thanks for bringing this to life!

Forgot to add in my last post:

All that means (among other things) that it is all UNSECURED DEBT. Which is a big issue in BK court.

We are basically being LIED TO and not getting our DUE PROCESS with regards to foreclosures and the “debt” that is supposedly owed.

@Boru
Just called the 202 649 5400 # and spoke with Monica. She also gave me the 1 800 #. Since we were foreclosed by IndyMac One West Bank and they are continuing with the IFR and did not settle (they are trying to sell the bank and are stalling which is their MO) I wasn’t able to request what all of you who are getting checks can at this time.
But you can call Monica back if you choose and Tell her what you want re the certified letter which states the state and fed laws broken by your servicer and therefore the reason you were provided the check in the first place and ask how you can get your file. Then, if she is not helpful ask her for her name (and write down the time you called) and for Elizabeth Warrens phone # and email.
I suspect an influx of calls documented to one place requesting the same info to the OCC or even to Warrens office can maybe send a message. We just cant allow this to be swept under the rug the way they would prefer. We are not just going away….ever.

This article is part of an ongoing investigation:
Foreclosure Crisis

Foreclosure Crisis: Banks and Government Fail Homeowners

Banks and the government have fallen short in helping homeowners in danger of foreclosure.

The Story So Far

Systemic failures at the country’s banks and mortgage servicers have exacerbated the most severe foreclosure crisis since the Great Depression, and government efforts to limit the damage have fallen short. ProPublica created an unrivaled database of homeowners who have faced foreclosure, opened a Facebook page to encourage homeowners to share their stories, wrote profiles of some of them, and incorporated their experiences into our reporting. We also provided a comprehensive rundown of the numbers behind the crisis.

More »

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