Victims of Foreclosure May Be Eligible for Claim in National Foreclosure Settlement Judgement

Pam Bondi, Florida’s Attorney General, announced that claim forms are going out to approximately 167,398 Florida borrowers who lost their home to foreclosure between Jan. 1, 2008 and Dec. 31, 2011 and who may be eligible for payment under the $25 billion national mortgage foreclosure settlement. Florida’s portion received is 8.4 billion. If you are a borrower and you want to apply to be in this settlement, go here. You have until January 18, 2013 to file this claim! On this website you can read the Settlement Judgements and also using the first link at the bottom of the page, file a claim. You are eligible if your mortgage was serviced by Ally/GMAC, Bank of America, JP Morgan Chase, Citibank and Wells Fargo. Their following payment settlement amounts are as follows, in order of greatest to least:

  1. Bank of America – $2,382,415,075 ($2.4 B – rounded)
  2. JP Morgan Chase – $1,121,188,661 ($1.2 B)
  3. Wells Fargo – $1,005,233,716 ($1 B)
  4. Citibank – $413,041,577 ($413 M)
  5. Ally/GMAC – $109,628,425 ($109 M)

The following Borrower Payment Amount (provide cash payments to borrowers whose homes were finally sold or taken in foreclosure between and including Jan 1, 2008 and Dec 31, 2011 and who submitted claims for harm) are the same for each Bank/Lender, each one owing $1,489,813,925.

The following Consumer Relief amounts and Refinancing Relief amounts, are amounts that the banks/lenders must provide to those consumers who meet the eligibility criteria. The following numbers have been rounded.

  1. Wells Fargo – Consumer Relief: $3.4 M || Refinancing Relief: $903M
  2. Ally/GMAC – Consumer Relief: $185 M || Refinancing Relief: $15 M
  3. Bank of America – Consumer Relief: $7.6 B || Refinancing Relief: $948 M
  4. Citibank – Consumer Relief: $1.4 B || Refinancing Relief: $378 M
  5. JP Morgan Chase – Consumer Relief: $3.7 B || Refinancing Relief: $537 M

The Settlement Judgments essentially say that the top five leading banks/lenders violated, among other laws, the:

  1. Unfair and Deceptive Acts and Practices
  2. False Claims Act
  3. Financial Institutions Reform, Recovery and Enforcement Act of 1989
  4. Servicemembers Civil Relief Act
  5. Bankruptcy Code and Federal Rules of Bankruptcy Procedure

Things to know: 

  • You must have received the form by January 18 by your Attorney General
  • You can have someone help you fill the form; it should be an Attorney or the Toll-Free admin at 1 (866) 430-8358
  • Payment’s won’t stop other legal claims – meaning you do not need to prove any financial harm to receive a payment nor do they  make you give up your rights to pursue a lawsuit against the mortgage servicer
  • Eligible borrowers may get a payment from this settlement even if they participated in another foreclosure claims process; however payment may be reduced
  • If you are eligible and you were NOT notified, you need to contact the AG of your state
  • Beware of scams – paying strangers to file the claim, any known settlement-related scams regarding homeowners