Published On: September 11, 2013
Big banks settle: to Pay $8.5 Billion to settle claims of wrongful foreclosure actions.
Aurora Bank, Bank of America, Citigroup, J.P. Morgan Chase, Wells Fargo, Sovereign Bank, MetLife, US Bank, SunTrust, and PNC agree to pay settlement.
January, 2013 – The federal government and 10 banks agreed to an $8.5 billion foreclosure settlement on Monday. The agreement puts to rest allegations that the banks didn’t follow proper foreclosure procedures.
Following the financial crisis that began in 2008, millions of Americans lost their homes through foreclosure. Many of those people were actually current on their mortgage payments. Regulators initially tried to introduce a system to review foreclosure files for defects, but this settlement will replace it. So, if you dealt with foreclosure in 2009 or 2010, this settlement may apply to you.
Click here for more on the settlement
The awards that homeowners will get from the settlement will vary. Many who were charged improper fees will get a few hundred dollars, while others who lost their homes to foreclosure.
As part of the agreement, banks will provide $3.3 billion in cash to 3.8 million mortgage borrowers who were foreclosed on. Ten banks have signed on: Aurora Bank, Bank of America, Citigroup, J.P. Morgan Chase, Wells Fargo, Sovereign Bank, MetLife, US Bank, SunTrust, and PNC, according to USA Today.
If you held a mortgage with any of those banks, you’re entitled to some of that money. That applies even if your foreclosure was handled appropriately, or if you haven’t filed a complaint. Why? Because most banks have determined that it’s more cost-effective to compensate everyone rather than determine which foreclosed individuals suffered harm.
The awards that homeowners will get from the settlement will vary. Many who were charged improper fees will get a few hundred dollars, while others who lost their homes to foreclosure — even though they were paid up — may get as much as $125,000, according to CBS News. What do you have to do if you are in this group? Supposedly nothing. The regulators will contact all affected individuals by the end of March.
Click here for more on the settlement
We have several videos on our web site. Below are a few that might be of interest:
- “Lender’s Foreclosure Rights in Arizona”
- “Should I keep my home or let it go into foreclosure?”
- “Meet Ms. Drain and Suggestions on How to Hire an Attorney”
MUSINGS BY DIANE:
“For those of you struggling to keep you homes, another $5.2 billion will go toward mortgage relief.
A settlement like this means legal claims against the banks will be dropped in exchange for their compliance. But that only applies to claims that have already been brought. If you’re unsatisfied with the way your bank handled your mortgage, you can still bring a claim.
About the Author: Diane Drain
Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.
*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*
“You folks are the BEST OF THE BEST in Arizona.” M.H.
You and Jay are the best attorneys I have ever had or needed and thank God for the Honorable Robert Gottsfield in recommending you folks – I would have never made it through the entire process without you and Jay and God Bless you both always and stay in touch as well. You folks are the BEST OF THE BEST in Arizona.
“My only regret is that I didn’t find Diane sooner.” K.H.
I can’t say enough good things about Diane. The way she handled my not typical circumstances was amazing. I was very nervous to start the bankruptcy process but Diane just has a very comforting way of explaining the whole process. My only regret is that I didn’t find Diane sooner. If you find yourself in a financial situation that you can’t correct on your own, please Call Diane Drain as soon as possible.
“Filing for bankruptcy can be a stressful life event” R.A.
Filing for bankruptcy can be a stressful life event, and selecting the right attorney can add to this stress. Diane and Jay were a pleasure to work with, and it is obvious that they are passionate about helping people get their life back on track. I would highly recommend them if you need a bankruptcy attorney.
Related Posts
Published On: March 6, 2023
PEOPLE MAY WANT TO FILE A TAX RETURN – EVEN IF THEY ARE NOT REQUIRED TO DO SO Posting from the IRS IRS Tax Tip 2023-27, March 2, 2023 [...]
Published On: February 1, 2023
New Consumer Law Rights Taking Effect in 2023. This NCLC article lists federal and state consumer law rights scheduled to go into effect or expire, during the period from November 17, 2022, through December 31, 2023. Other consumer law changes will be enacted later in 2023 and will go into effect in 2023; this article lists changes whose effective dates have already been scheduled.
Published On: January 22, 2023
New Consumer Law Rights Taking Effect in 2023. This NCLC article lists federal and state consumer law rights scheduled to go into effect or expire, during the period from November 17, 2022, through December 31, 2023. Other consumer law changes will be enacted later in 2023 and will go into effect in 2023; this article lists changes whose effective dates have already been scheduled.
Published On: July 24, 2022
Want to avoid dishonest debt collectors? Watch this video from FTC’s Consumer Advice By Joseph Ferrari,July 22, 2022 (reprint from FTC, Consumer Alerts) During Military Consumer Month 2022, the FTC [...]
My intention is to put you back in control of your life
Start with $0 down*. We provide affordable payment plans.
