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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
steve
May 08, 2013 at 2:27 pm

oops = national mortgage sett. app. had to be filled out by jan. this year,.....that's the $840.00/min. payment,...i'm getting both confused.

steve
May 08, 2013 at 2:24 pm

i just realized 2 weeks ago that there were two reviews [ind. and nat.],.....i recieved $800 4/24 = no card/app. had to be filled-out,.....the ind.-review payment [card/app. had to be filled-out]is supposedly being mailed-out at the end/middle of this month/may = $840.00 minimum.

casey
May 08, 2013 at 2:05 pm

the website says mid to late may.....when they did the independant review they released the day they were starting to send them out.

Steven
May 08, 2013 at 2:03 pm

5/8/13 Still waiting! Got nothing from either. Turned in my paperwork from NMS last October. :0(

casey
May 08, 2013 at 1:57 pm

any idea when the national mortgage settlement checks are supposed to be mailed?

Ray Westphal
May 07, 2013 at 10:36 pm

COOL! I am happy for you but you deserved more if you went through the nightmare we went through. Thank you for posting that as many are wanting to know. Just curious, did they ask you for your tax ID # with a W9 form?

Michelle
May 07, 2013 at 10:23 pm

Hi,

I received my payment approx. April 12th 2013 from the Independent Foreclosure review. My check was for $6,000. I am still waiting on my check from the National Mortgage Settlement.

Ray Westphal
May 07, 2013 at 4:48 pm

Thank you Michelle, we called Rust Consultant to verify it and gave them all our information. They also explained this can take until July to complete. They said this is just to verify that the ss# is correct and that they are sending the payment to the right person. This tells me that this is a large amount and they want to be sure that it gets to the right person. Just a speculation and my observation. I hope it's not a swift kick in the teeth. I do know that it is over $600.00 because they do not have to file it to the IRS if it is under that amount. Thanks again Michelle you woke me up. I think this may be why I was in trouble in the first place with my loan as they found a sucker and they knew it.

Michelle
May 07, 2013 at 12:21 pm

Ray,
If they need your tax id number, then make sure they provided you with a proper phone number for you to call and give it to them over the phone. But check that phone number to make sure your not being scammed.

Ray Westphal
May 06, 2013 at 7:49 pm

Today I recieved something from Rust. They said they have to have my tax ID # to see if taxes will have to be deducted. They could not seem to find the tax ID #. Does anyone know what this means?