Mortgages Blog

Finance Blogs » Mortgages » Borrowers may get 2 checks in deals

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.

«
»
Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
106 Comments
Penny
January 13, 2014 at 9:51 am

After applying for a modification, which took over a year for them to say no. (Lots of requests for paperwork and sending them paperwork several times because they claimed they didn't get it) Our home was sold on a short sale, pending forclosure, the short sale was $40,000 less than what we owed. Then the surprise, a 1099 for the 40K! We ended up with a $10,000.00 tax debt! Think the check will cover that? I doubt it! The info I received said checks in January. Now May? What truely is going on???!!!!

Griselda Silva
January 08, 2014 at 3:06 am

I was also suppose to receive money, but never did. I also have called the number provided, and all i get is that they cant give out any information. I think this is all a scam and the attorneys are keeping a lot of this settlement monies.

I have a sister that lost a home in about 2009 that received $30K i lost more than 1 home from 2009-2011 to Bank of America and JPMorgan Chase, and til this day i haven't gotten what was told i wold get

Stacy
January 07, 2014 at 3:35 pm

I just spoke to someone regarding the checks. They were not mailed out in December. They do not know at this time when the checks will be mailed out. They cannot give any kind of time frame at all. Looks like it is going to take a while.

Jennifer
January 05, 2014 at 9:27 am

I was also expecting a check in d December. The notice that I signed and received in late Sept/early October ( can't remember exactly) said that all I had to do is sign and send back and they will start mailing those checks out in December 2013. I called last the settlement 800 number last week and the recording said all checks should be sent out by end of 2013. I really need the money right now and don't understand why I have not received it yet. I plan on making some phone calls tomorrow, and hopefully I will find something out! Anyone currently waiting on a check, could you please comment what you know or if you happen to receive your check? Thank you!

Peggy
January 05, 2014 at 7:33 am

I was also supposed to receive a check prior to the end of 2013. It is now January 5th and no check as well as no new phone updatss.

Catherine
December 28, 2013 at 3:28 pm

I have yet to recieve my check. I called the Attorney General in the state I lived in when I lost my home and they sent me to an automated message that told me how much.to expect and to expect my check before the first of the year. Now the 28th and only 3 days left in the year. I'm worried.

Mary
December 14, 2013 at 8:04 pm

Did ya receive a post card type letter in the mail before? I just received one today. Call them and they said keep a eye out on my mailbox

Jimmie
December 09, 2013 at 8:14 pm

Received my check just couple days ago ,,,but check is issued to myself and deceased wife ...how do I get it replaced....bank won't let me cash cause she is no longer here....help

Stephanie Griffin
December 04, 2013 at 9:13 pm

My friend said, her house sold for 60,000.00 and that was the same amount of the check that was sent to her by certified mail. Just thought some people might want to know. Haven't seen it myself but figuredInc I would let people know.

Wayne
December 01, 2013 at 10:57 am

I got my check, but it took 6 months before it was sent to me. It was for a nice sum, well over a $1000. The letter states that the money was released in April 2013. I received in Nov 2013 and I'm wondering what was being done to the money for over 6 months. Was it held in some corporate bank account gaining interest daily, or a personal account where a small group of people shared the profits..I am very suspicious of some kind of covert manipulation going on here, and if that's the case, I should have gotten more..but with so many people on here who have not received at all, I thankful to get what I got.. and probably won't rock the boat.