For homeowners who were unlawfully foreclosed upon, the recent program to review these proceedings came as good news. The foreclosure review process was designed to evaluate individual foreclosure cases to determine if affected homeowners are due reimbursement. However, a new study shows that very few potentially eligible homeowners have taken advantage of the review program.
The mortgage settlement agreement outlines a $25 billion foreclosure abuse settlement, to which many homeowners can receive restitution for their troubles. The Federal Reserve and other industry regulators have been working to facilitate compensation to homeowners. However, it is reported that only 3% of borrowers have applied to have their case reviewed.
The post office is reporting hundreds of returned foreclosure-related mailings, indicating that bank owned records are out dated. Without the correct address, banks are having difficulty reaching affected homeowners, especially those that aren’t seeking the review on their own. Further, some banks are reported problems with their internal processing systems, saying the accuracy of their records is problematic. Without an efficient means for contacting potentially eligible homeowners, industry regulators fear much of the funds allocated to homeowners will go untouched.