Contributions by Molly C. Herndon and Carolyn Bird
The Office of the Comptroller of the Currency announced in November 2011 consumers may request an Independent Foreclosure Review of foreclosure cases that occurred between Jan. 1, 2009 and Dec. 31, 2010. The deadline to request a review is approaching. This process was ordered after regulators found unsound lending, servicing and foreclosure practices among large lending companies. Foreclosures against homes owned by service members will also be reviewed to determine if the action was in violation of the Service Members Civil Relief Act. The deadline to file a request for review is April 30, 2012.
Borrowers who faced foreclosure during these two years on their primary residence can request a review of the case if they believe they suffered “financial injury” as a result of the process. Financially injurious situations include, but are not limited to:
- The mortgage balance at the time of the foreclosure was more than was actually owed on the property.
- Fees were charged, or mortgage payments were inaccurately calculated, processed or applied.
- The borrower followed the guidelines of a Modification Agreement with the lender, but the foreclosure sale still took place.
- The foreclosure action took place while the borrower was protected by bankruptcy.
- The foreclosure proceeded against a Military service member and was in violation of the Service Members Civil Relief Act protections.
Borrowers who faced foreclosure during these two years and believe the process resulted in financial injury may request a review if their loan was secured from one of the lenders listed below:
- America’s Saving Company
- Aurora Loan Services
- Bank of America
- Citi Mortgage
- EverBank/ Everhome
- Freedom Financial
- GMAC Mortgage
- IndyMac Mortgage Services
- MetLife Bank
- National City
- Sovereign Bank
- Sun-Trust Mortgage
- U.S. Bank
- Washington Mutual
- Wells Fargo
The review process will determine if errors were made during their foreclosure process, and, if financial injury was sustained, the borrower may be eligible for compensation.
To assist clients in determining their eligibility, prior to the April 30 deadline, call (888) 952-9105, Monday through Friday, 8 a.m.-10 p.m. and on Saturdays from 8 a.m.-5 p.m. For more details about this review process, visit IndependentForeclosureReview.com and OCC: Correcting Foreclosure Practices.