Huge Foreclosure Settlement in Michigan

There was recently a large settlement made between five major mortgage services and abused homeowners. These five major companies supposedly signed foreclosure-related documents without the authorization of a notary and did not ensure that all the facts in the documents were correct.

This group was accused of fraud and they had to pay a hefty sum, which the governor allocated to the Homeowner Protection Fund. Those that have experienced foreclosure abuses will receive payment from this fund. New reforms were also introduced to fix mortgage servicing procedures and minimize the number of foreclosure abuses.

The Michigan governor announced in early June that homeowners that Michigan residents affected by the recent events will be able to receive payments. The funds given to those that were affected are designed to help them get back on their feet and are not allowed to be used for recreational use.

There are certain eligibility criteria homeowners must meet if they want to receive reimbursement for the wrongs they have suffered. Homeowners must have lost their home to foreclosure between January 1, 2008 and December 31, 2011. They must also have dealt with Ally, Bank of America, Citi, JPMorgan Chase or Wells Fargo because are the five companies that participated in the settlement.

The settlement was reached in February 2012 between the five mortgage services and 48 state attorneys along with the federal government. The five companies have provided about $50 billion in relief to troubled homeowners, which is a positive sign that things are moving in the right direction.

It may take a while for borrowers to receive a claim payment in the mail as many abused homeowners have filed complaints against the five mortgage services. Some may also receive something called a split payment. However, everyone received some kind of letter regarding whether they are eligible or not to receive payment. The settlement administrator began mailing payments started June 10, 2013.