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Borrowers may get 2 checks in deals

By Polyana da Costa · Bankrate.com
Friday, April 19, 2013
Posted: 4 pm ET

Many of the borrowers who have received a check from Rust Consulting under the so-called foreclosure review settlement are wondering why their payments were less than the minimum $840 they were told they would get.

"Why did the paperwork promise a minimum of $800 per homeowner and now its $300?" one reader asks.

"On a letter I received it said that I would receive no less than $840," another reader writes.

Let's clarify the confusion.

A pair of settlements

There are two mortgage settlements in which borrowers will receive checks this year. The one that will pay borrowers a minimum of $840 is the National Mortgage Settlement, which resulted from negotiations between 49 state attorneys general, the federal government and five of the nation's largest banks. These payments have not been mailed out yet. (Oklahoma didn't participate in the settlement.)

The checks that borrowers are receiving now resulted from a settlement led by the OCC with 13 banks to halt the review of foreclosure files for borrowers who had homes in foreclosure in 2009 and 2010.

I'd like a double dip, please

  • Can you get a payment under both settlements?

If you meet the criteria for both, you may get two checks. Receiving a check for the foreclosure review settlement will not stop borrowers from receiving payment under the national mortgage settlement, says Geoff Greenwood, communications director for the Iowa attorney general.

Who's eligible for what?

  • National Mortgage Settlement payments totaling $1.5 billion:

This is for borrowers who lost their homes to foreclosure between 2008 and 2011 and had loans that were not owned by Fannie and Freddie and whose were serviced by one of the five lenders: Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo.

Claim forms were mailed out to eligible borrowers last year, around September and October. Only borrowers who submitted claim forms will receive payments. The deadline to submit the forms was in January. This is different than having submitted a request to the OCC for a foreclosure review.

Based on the number of eligible borrowers and the $1.5 billion available for cash payments, borrowers who submitted a claim will receive a minimum of $840, but likely more because many borrowers probably didn't respond.

Regulators are in the final stages of processing the claims and the checks are expected to be mailed out by early summer, Greenwood said.

To make matters more confusing, the paying agent in both settlements is Rust Consulting. If you get mail from Rust Consulting, don't throw it away.

  • Foreclosure 'review' settlement payments totaling $3.6 billion:

This is for borrowers who were in foreclosure in 2009 and 2010 and whose loans were serviced by one of the 13 banks in the agreement. More than 4 million borrowers will receive checks ranging from $300 to $125,000. Most checks are less than $1,000. The majority of these checks will be sent by the end of April.

Here's what the payment envelope from Rust Consulting looks like.

Follow me on Twitter @Polyanad.

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106 Comments
Ray Westphal
May 05, 2013 at 11:21 pm

Still waiting.
I have a feeling from what I have been reading it is not going to be good for me either. I asked Rust Consultant, if you cant tell me how much or when your sending it. Can I ask you this, Do good things come to people who wait and I could hear smile and say yes. So I guess it is how you phrase your question. Now we will see how good it will be. I will post my amount when I get it. Rust explained to me that there are 5 waves of checks and the last one was sent Friday. The 5th wave will be sent to those who were under other banks which I was not one of. So I should be getting my check this next week. People do need to band together and get more out of this nightmare.

sheena
May 05, 2013 at 9:53 pm

How do you know when it has been mailed out

Billyjean
May 05, 2013 at 7:22 pm

From what I understand, the National Mortgage Settlement checks has NOT been mailed yet. They should go out in 3 to 5 weeks, and the minumum amount should be more than $300. The least you can get from the National Settlement is $840, but it could be more. The Independent Mortgage Settlement has already mailed out their checks to qualifield applicants. If you already sent in your claim form before January 18, 2013 for the National Settlement, you most likely may receive a check within the next 3-6 weeks.

4closed
May 04, 2013 at 4:12 pm

This is another case of all these crooked banks and the so called govt agencys that monitors them. As, far as the I.F.R. I cannot believe, that it was stopped early due to being stated as, "TO COSTLY & TIME CONSUMING" and ultimately left up to the banks once again to decide the outcome. REALLY? Do your job. I would have waited as long as it would take to have everything reviewed properly instead I recieved $500 from the I.F.R. WOW! Thank you! But, whatever catagory your review procedures that I fell into were obviously not reviewed correctly. Sounds to me as the same ol' story. 13 banks 9.3 billion and a payout borrowers of an estimate of 800 million. Where is the rest?

I was approved for a loan modification by CITI. made my 3 monthly trial payment. and continued to pay for 2&1/2 yrs never missing a payment waiting for CITI to modify my loan. Ultimately, in the time period of paying my trial payment, they decieded to foreclose. Someone please tell me how this is possible?

Well, I thought when I started to recieve all of this review information, there maybe some hope in getting a boost financially. But, once again that was, "ONE BIG JOKE"
Good Luck to everyone out there, but we are all a bunch of little fish in one big bowl!

steve
May 03, 2013 at 1:56 pm

i just recently found out about getting two differant checks,.....i recieved my $800.00 last monday [ind.-for./rev.],...apparently the form i filled out last oct. was for the ''national-for./rev.'' for the $840.00/min. payment.,.....this was not really explained to good/AT ALL to many of US.,....still $ad getting too little for what the banksters did to US...!

tellmesomemore
May 03, 2013 at 11:48 am

David regarding your question 1st lien 2nd lien... I received letter from my mortgage comp... they agreed to forgive all the balance on my first lien... im responsible for hm owner ins. and taxes.

smooches
May 03, 2013 at 11:14 am

I called the NMS they where very helpful. 866-430-8358

Caryn
May 02, 2013 at 11:16 pm

I was one of the " lucky" ones. I got two $300 cheks from the independent Forclosure Review and am getting the money from the NMS. I have no idea why other than I had a forecloser. I only learned of the IFR and called and they said they already sent checks! But they sent it to an address I had 6 years ago. I did get the checks

Dianna
May 02, 2013 at 7:32 pm

my home went into forclosure in 2008, and I sent my form in for the settlement as soon as I received it. I have not receive anything else or heard if I was eligible to receive a check

HW Crook
April 28, 2013 at 8:15 am

Why do some recieve $300 and others $125000?