Facing foreclosure is a stressful time for anyone whose mortgage debts became out of their reach. The recent foreclosure crisis spurred an even worse pattern of foreclosure scams and unprofessional lending practices. Once news of the scandals broke, further investigation revealed the problem was much deeper than originally thought. Banks of all sizes and reputations were found to be guilty of “robo-signing”, leaving many homeowners in foreclosure illegally and/or unnecessarily.
Government Offers Victim Compensation
The Federal Reserve Board and Office Of Comptroller of the Currency have announced that they will be extending their services to help homeowners who were victims of the foreclosure scandal and robo-signing scams. The departments will be conducing independent reviews of allegedly mishandled foreclosures for homeowners whose primary residence entered foreclosure during 2009 and 2010.
Qualifying homeowners who suffered financially due to the errors and misrepresentations of lending practices may be entitled to receive compensation for their troubles. Anyone seeking to receive a case review must apply before April 30, 2012 and can find more information online by searching for “Independent Foreclosure Review”.