We have good news to report for Americans who lost their homes due to foreclosure between January 1, 2009 and December 31, 2010. Federal authorities have launched a nationwide review of all foreclosures that occurred during this time period. This is one of the largest reviews of this nature launched the government. Homeowners are eligible if they meet one of the following three criteria:
- If the property was their primary residence.
- If the mortgage was in any stage of the foreclosure process during the stated time frame.
- If the mortgage was serviced by at least one of the lenders listed on the Federal Reserve Board’s website here.
Paul Leonard, Vice President of Government Affairs for the Housing Policy Council, has stated that decisions regarding financial remuneration for borrowers who fell victim to lender fraud during the specified time period have not been determined yet. The usual suspects of lending institutions, including Bank of America, Citibank, Chase and Wells Fargo, are being targeted and will be responsible for footing the bill.
This review is further evidence of the national crackdown on unfair and illegal lending practices. In the recent past, lending institutions purposely misled borrowers, charged inaccurate fees on mortgage payments, and dissuaded homeowners from bringing a third party to the table during negotiations to help advocate on their behalf. With regard to foreclosures and loan modifications, as a homeowner, you should always feel empowered and entitled to understand your rights, the fine print, and all rules and regulations related to home ownership.
More than 500,000 homes in California were involved in the foreclosure process in 2010, and many of these homes were in or around the larger Los Angeles region. Do you qualify for a foreclosure review? If you do, if you’re currently at any stage of the foreclosure process and don’t have someone representing you, consider calling us at McFarlin LLP. We have the experience required to protect you during the process and advocate effectively on your behalf.