Attorney General Kilmartin reminds Rhode Island residents who lost their residence to an improper foreclosure between January of 2008 and December of 2011 that the deadline to file a claim under the $25 billion National Mortgage Settlement is Friday, Jan. 18. Borrowers who are eligible had mortgages serviced by Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo.
The settlement, which took effect in April of last year, earmarked about $1.5 billion in payments for 2 million borrowers who lost their homes to foreclosure during that period. The exact payment will depend upon the total number of borrowers who decide to participate. Payment checks are expected to be mailed in mid-2013.
Kilmartin mailed approximately 5,500 packages to eligible residents in October. To date, 2,674 claims have been completed and returned. Borrowers who believe they may qualify but did not receive a notice because they moved should contact the settlement administrator directly to provide that information or visit www.nationalmortgagesettlement.com to download and complete a claim form.
“It is not too late to file a claim for a cash payment if you believe you were improperly foreclosed upon by one of the five mortgage service providers who are part of this national settlement,” said Kilmartin.
Kilmartin noted 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. 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.
The one-page claim forms are simple to complete. However, borrowers who have questions or need help filing their claim can contact the settlement administrator, toll-free, at 1-866-430-8358, or send questions by email to email@example.com. The information line is staffed Monday through Friday from 7 a.m. to 7 p.m. CST.