Banks face steep penalties for improperly foreclosing, so it is in their interest to be scrupulous when taking action on delinquent mortgage accounts. Unfortunately, however, sometimes banks foreclose without the legal right to do so. In those situations, a foreclosure defense attorney is your best option for either preventing foreclosure or for collecting restitution for improper eviction.
Minnesota homeowners should be aware that on Aug. 2 the U.S. government announced that it was extending the deadline for participation in a program designed to address improper foreclosures. These were foreclosures that occurred in 2009 and 2010. During this period, banks and other financial institutions incorrectly foreclosed on an unknown number of homeowners.
Because of complicated directions and a widespread lack of awareness about the program, U.S. authorities have changed the deadline for applying for a review. The deadline was Sept. 30, 2012, and now it is Dec. 31, 2012.
Mortgagers who were affected by improper foreclosures should work with an attorney who is familiar with cases of foreclosure fraud and bankruptcy. You will not only want to know if you are eligible to apply for review; you will also want to make sure you receive the full amount of compensation due.
In an agreement to settle the government's findings of improper financial practices, 14 mortgage servicers agreed to pay $125,000 to each borrower whose home was incorrectly seized during 2009 and 2010. That payment amount could be higher for some people. Borrowers who were affected must request that their accounts be reviewed under the Independent Foreclosure Review program.
Mortgage servicers who are party to the April 2011 agreement will be required to hire independent reviewers to examine accounts for impropriety. Minnesotans who think they may qualify for the program should do what is legally in their power to ensure that proper compensation is awarded.
Source: Chicago Tribune, "U.S. extends deadline for foreclosure reviews," Aug. 2, 2012