INDIANAPOLIS – Indiana Attorney General Greg Zoeller announced today that eligible borrowers who lost their homes to foreclosure will soon receive claim forms to submit for payment under the national mortgage settlement.
In February, Indiana was one of 49 states to join in the federal government’s settlement with the nation’s five major mortgage lending banks and servicing institutions for allegations of robosigning. As part of the settlement, Indiana’s homeowners who were foreclosed upon and experienced a servicer error between Jan. 1, 2008 and Dec. 31, 2011 will receive a total of $31.4 million in cash payments.
In Indiana, more than 37,000 packets which include a letter from the Attorney General’s Office, claim form, instructions and answers to frequently asked questions are being mailed to eligible borrowers and continuing through Oct. 12. Last week, the national settlement administrator mailed notification postcards to eligible borrowers nationwide.
“Our office recognizes that these payments are not going to make affected borrowers whole again, because the impact of foreclosure is far-reaching and devastating to families,” Zoeller said. “However, this historic settlement does provide some much needed relief to those who may still be struggling to make ends meet. I encourage those who think they may be eligible for payment to watch for communications from the Attorney General’s Office and submit their claims before the January deadline.”
Zoeller urged eligible borrowers to complete their claim forms and return them as soon as possible in the envelope provided or file them online at www.nationalmortgagesettlement.com. The deadline for all claims is Jan. 18, 2013. Payment checks are expected to be mailed in mid-2013.
Eligible homeowners must have had loans serviced by Ally/GMAC, Bank of America, Citi Bank, JP Morgan Chase or Wells Fargo and lost their homes either through sheriff sale, short sale or deed in lieu of foreclosure. Depending upon the number of eligible participants, the amount payable to these borrowers will be about $840 per eligible household.
Consumers who believe they are eligible but do not receive a postcard or claim packet can call the settlement administrator’s hotline toll-free at 1-866-430-8358. The hotline is staffed Monday through Friday from 7 a.m. to 7 p.m. Central. Borrowers who have questions or need help filing their claim can also contact the settlement administrator at the toll-free number or send questions by email to email@example.com.
Zoeller said eligible borrowers do not need to prove financial harm to receive a payment, nor do they give up their rights to pursue a lawsuit against their mortgage servicer or to participate in the Independent Foreclosure Review Process being conducted by federal bank regulators. More information about that program is available at www.independentforeclosurereview.com.
Eligible borrowers may get a payment from this settlement even if they participate in another foreclosure claims process. However, any payment received may reduce payments borrowers may be eligible to receive in any other foreclosure claim process or legal proceeding.
Zoeller warns consumers that scammers may try to contact them and offer assistance in obtaining payment from the settlement for a fee. There is no cost to eligible borrowers to participate in this settlement and consumers should not provide any personal or financial information to the solicitor. If you think you might be a victim of a scam please file a complaint with the Attorney General’s Office by visiting www.IndianaConsumer.com or by calling 1-800-382-5516.
For more information about the settlement or claims process visit www.nationalmortgagesettlement.com.