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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
Yolanda
June 07, 2013 at 1:53 pm

Yes! I got $500 and that was a slap in the face from the first settlement I lost so much more than that, and this other settlment I got a letter to. so I am hoping at least myself like many others get at least a couple thousand.But most of all the sad thing is that the bank that had my house sold it for a mere 25,000 due to so many adandon homes because of the mortgage crisis. and if that was the case they should have sold it back to me for that amount, But I feel the pain of everyone when they said it was a slap in the face..the only ones that won was the bank :(

Debra Richardson
June 03, 2013 at 3:25 pm

Why cant we find out a more better date to receive the money besides early
Mid summer? No one seems to be able to pin point a closer date.

JIL T.
June 03, 2013 at 1:34 am

what a joke and insult. the lawyers are msking bank off our sad situation. I guess we just paid off their home !
600.00 is such a slap in the face...and now they said they made errors on the check amount.
this only the first check..the same people are in charge of issueing the srcond check.WHO CAN WE TRUST?

Paul Martin
May 24, 2013 at 1:26 am

I had to foreclose after working wth wells fargo on a short sale. 4 times I was approved for a shortsale sale on our home, we had the home sold for more than what we owed on it and was told we were denied. I dont understand it. I received a check for 300.00 dollars from the federal mortgage settlement. Does this sound suspicious to you. No more faith in Wisconsin.

John
May 22, 2013 at 9:04 pm

I received $300. I had fullfilled the 3 month modification agreement. After 7 months of consistant modified payments, Chase claimed I was late. I sent them proof. They once again put me into foreclosure saying that I did not fulfill my obligation and that I would now have to pay all the additional interest from the months that I was paying my modified amount. While I was making the same amount of money as the time of my modification they claimed that I now didnt qualify for modification.
By the time they were done with us, they tacked $10,000 onto our loan, raised our payment by $300 a month ($100)more than my original payment. And I am locked into this for the balance of twenty years!!! left on my mortgage.

Ray Westphal
May 19, 2013 at 8:31 pm

You guys have to let your fingers start typing. There is to much to talk about on the internet. There is a loansafe.org a forum that many are talking there. You have to type in keywords such as Independent Forclosure Review, OCC, Rust Consulting. W-9, I find a lot of the same stuff over and over again. Look up the OCC IFR, that will keep you updated the most. Many of us are upset. I am upset how they have treated people and I have not even recieved a check yet. I will post it and the amount when I get it. All I know is that mine will be over $600.00 because I I recieved a W9 form.

cherlyn D.
May 18, 2013 at 9:56 pm

This is not a fair payout fir what we have endured. My primary mortgage holder was Wilshire Credit Corps. I was under loan mod with this company, where by mortgage had got to where I was handling it with a breeze....due to a set back of getting hurt on the job, and force to draw my SS. The it was sold to Bank of America where my payment had rocket to a 3rd of what my loan mod was though Wiltshire Credit Corp. When I called Bank of America, got set up on another mod, payed to mortgages under the mod though Bank of America....come to find out they were foreclosing on my home as I'm paying into the modification......Yes, each case is different, but thecases need to be handled better before printing checks that is not satisfying the previous mortgagee of the disbelieve of what has happen to a piece of their "American Dream"

bryan
May 18, 2013 at 12:28 pm

Dennis...I'm no expert, my father in law lost his house...got this check. I don't know what you mean when you say you should have gotten x amount but got y amount instead. It sounds like free govt money. Hope your situation is improving. I live in jersey and my story is all to mundane to bore you.

Dennis Bryant
May 17, 2013 at 9:29 pm

The paper work for that was sent mid last year. I filled my paper work out same day I got it and sent it back the next day. I think how they find out how much money you get back Is they take take the lowest violation and pay you out on that.Sounds like we may get another one from some other law suite . not going to hold my breath. I should have got 25.000. instead got 500. what a kick in the teeth when you are down.

Sandy
May 17, 2013 at 12:53 am

Ray please post web link I'd also like a re-evaluate review. I also lost my home and don't think the pay out is fair!!! I also pay more in rent than my temp mod was. Please help anybody with more info on this re-evaluate review.