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Potential Restitution From an Improper Foreclosure

Posted on | October 28, 2011 | No Comments

Wikipedia defines Foreclosure as “the legal process by which a mortgage lender (mortgagee), or other lien holder, obtains a termination of a mortgage borrower (mortgagor)’s equitable right of redemption, either by court order or by operation of law (after following a specific statutory procedure).”

Millions of homeowners went through this process in 2009 and 2010.   Some servicers cut corners and didn’t follow the legal process and restitution may be in order for those homeowners.


The reviews are part of a larger enforcement action taken against 14 large mortgage servicers last April by the OCC, the Federal Reserve and Office of Thrift Supervision in the wake of the “robo-signing” scandal.

Mistakes eligible for restitution include:

•Paid impermissible fees or penalties.

•Paid too much or had payments misapplied.

•Were wrongly denied loan modifications.

•Were wrongly foreclosed upon.

Are you eligible?

The reviews cover homeowners in any stage of the foreclosure process on a primary home in 2009 or 2010. Anyone who meets that requirement — and was a customer of one of the 14 servicers — will get a review if they ask. The servicers include:  Bank of America, Citibank, JPMorgan Chase, Wells Fargo, Ally Financial, Aurora Bank, EverBank Financial, HSBC, MetLife, OneWest, PNC, Sovereign Bank, SunTrust Banks and U.S. Bancorp.


The reviews are completely free for all eligible borrowers. Consumers should beware of anyone requesting to be paid for this service or who claims they can influence the outcome of the review.


Check your mailbox in the next few weeks.  You’ll receive a notice in the mail indicating your right to seek a review.   If you don’t receive a notice but feel you are eligible, you may visit for more information about the review process. Assistance is also available at 1-888-952-9105.

More information available here and here.


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