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Borrowers see some justice

By Judy Martel · Bankrate.com
Wednesday, July 4, 2012
Posted: 7 pm ET

Finally, the victims of foreclosure abuse will receive compensation from mortgage lenders.

The Office of the Comptroller of the Currency and the Federal Reserve have announced that homeowners who were victimized by wrongdoing and suffered financial harm in 2009 and 2010 could receive more than $125,000.

At the heart of the foreclosure abuse is the so-called robosigning scandal -- when mortgage lenders signed thousands of documents relating to foreclosures without verifying the information. Lenders, including Bank of America, Chase, Citibank and Wells Fargo, among others, have agreed to compensate borrowers.

Far more borrowers may be eligible for compensation. According to the Federal Reserve and the Office of the Comptroller of the Currency, only a fraction of the 4.4 million homeowners eligible for independent review of their situation have responded to letters sent by the banks. As of May 31, only 340,000 borrowers were scheduled for review. Due to the low response, the deadline to apply has been extended to Sept. 30.

If you think you are eligible for an independent foreclosure review, you can find more information on this Federal Reserve website.

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