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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
Dummy
June 15, 2013 at 4:52 pm

Got another check. Ohio. $1,480.

Vanessa
June 15, 2013 at 4:31 pm

I got my check today (6-15-13)!! I'm in southern CA! Total amount $1484.21! Check envelope is from dept of justice!!

Yolanda
June 14, 2013 at 9:43 pm

The first check I got from the Foreclosure settlement was $500 I lost thousands upon thousands.

the next check should be $1485 as they stated I haven't got that yet, still waiting. It's not much compare to what we all lost.

My loan was with CITI

Jacqueline
June 14, 2013 at 8:28 pm

I too requested modification from Chase due to both my husband and I were both seriously ill, and I lost my job due to my illness. The bank gave us a temp mod, but they increased the amt by $300, we paid that amount for 3 months, then they notified us that we did not qualify 'cause we were able to pay the higher amount. I also lost my life, but thanks to God they were able to revive me, but a few months later my husband died. Now I not sure if they will only give me half of the $1480. I had to submit death certificate and PoA for my husband. Hopefully I will give the $1480, it is desperately needed. I'm not able to work any more due to my health.
I hope someone out there can answer this question: Will they take a portion away since husband is deceased?
I did receive $500 from the IFR in April.

KD
June 14, 2013 at 5:50 pm

Anyone know if you owe the IRS from last year but are making payments to Federal and State if they will keep the check and apply it or still mail it ?? Also had anyone received more than $1484 or less than that if they got &
$400 from the other settlement?????

Jason
June 14, 2013 at 12:27 am

Melissa I am in your boat! The exact same thing happened to me. I contacted Rust Consulting and they said they mailed my claim form to a residence that I lived in 4 yrs ago. Which makes zero sense because I definitely keep my postal residence updated through Secretary of State and have lived in 2 other residences since moving out of the place they claim to have mailed my claim form to. Just doesn't add up, it's like they're trying to avoid paying some people.

cherry
June 12, 2013 at 9:40 am

I am not satisfied with 1480 dollars. Knowing my husband was dying of brain cancer, Chase lied to me and told me I had to be behind on 3 payments before I could get a loan mod. After 8 more months of lies and deceit, they told me my 2 percent loan mod was close, then I got the foreclosure notice. I lost my husband and his income, no loan mod, filed for chapter 7 (and Chase took payments from me during that time), then lost my home. I had both my kids living with me and my newborn grandson. I trusted Chase. I have not recovered form this. Financially or mentally. I want to sue the pants off of them. Any attorney out there willing to help me?

Michele
June 12, 2013 at 12:11 am

My check is missing. Rust Consulting says it went out in the first batch in April. Now they are sending out a form that I have to fill out that says I didn't get a check and still want it. I called on May 15th. They say it was mailed on May 24th. It was supposed to take two weeks to get here. It's June 11th. They said the first check would have come back to them so I guess it's sitting there somewhere...If I get the check before I fill out the form, I can cash it. If I fill out the form then get the check, I can't cash it or I will be slammed with fees. Oh joy.

Melissa
June 11, 2013 at 11:19 pm

Does anyone else find it odd that only about half of those eligible responded? I missed the deadline, and I meet the criteria. I haf a Chase loan...etc... Is there any recourse here??? No one contacted me, and I'm pretty up to date on the news events, but I knew nothing about this at all!

Brad
June 09, 2013 at 2:43 pm

From Debra Richardson: "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."

The checks will begin being sent out tomorrow, 6/10. Their website says that all checks should be sent out by 6/17.

The amount varies by state. In fact, I'm hearing that people who live in Texas will receive approximately $1800/person. The LOWEST amount is $1480/person.