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See a foreclosure check envelope

By Holden Lewis · Bankrate.com
Thursday, April 18, 2013
Posted: 10 am ET

This is what the envelope looks like when you receive a check resulting from the foreclosure settlement between the federal government and more than a dozen big banks.

I don't know about you, but I frequently get junk mail that looks like this: letters from private companies that are designed to fool you into thinking that they're from the government. In this instance, it's a letter from a private company that truly is working with the federal government.

The foreclosure review check is from Rust Consulting. Don't mistake it for junk mail.

Caution: Contents are not as described

The return address is from "Paying Agent -- Rust Consulting, Inc." in Faribault, Minn.

Below the return address, the envelope reads: "Important payment agreement information enclosed." But from what I hear, the letter contains almost no information. It doesn't explain how the payment amount was decided.

Nearly random amounts

In my blog post describing how some of the initial checks bounced, a reader comments: "I received a check for $500, with no explanation as to how they came up with that amount." And, she adds, $500 is inadequate to recompense her for what the bank did.

The settlement was between the banks and two federal agencies: the Office of the Comptroller of the Currency and the Federal Reserve. These regulators are coddling the banks and aren't protecting borrowers, as Sen. Elizabeth Warren, D-Mass., noted last week during a committee hearing.

The payouts vary from $300 to $125,000, with most people getting payments of $300 or $500. That's pennies on the dollar, Warren complained during the hearing. Regulators had let banks hire "independent" consultants to investigate irregularities in foreclosures in 2009 and 2010, but the consultants were slow, so the foreclosure reviews were scrapped. Instead, borrowers will get checks, whether or not their banks did something wrong. The borrower's actual financial loss doesn't enter into the equation.

Where to call

If you want to confirm that you qualify for payment, or if you need to update your address so the check is sent to the right place, call Rust Consulting at (888) 952-9105. You can talk to a representative after listening to automated messages for several minutes.

Follow me on Twitter @HoldenL.

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39 Comments
sheena
May 05, 2013 at 9:55 pm

How do you know when the check had been mailed out

ms R
May 05, 2013 at 11:36 am

BOA I was in the 4/19 wave check also went to foreclosure address and I still haven't received a form or a check its may. 5/5/2013 they handled this like they dont care if you get something or not much like the bank

Carrie
May 01, 2013 at 11:38 am

I just got my check yesterday, and it was for $1,000.00
Hoping it cashes :)

April
April 30, 2013 at 7:00 pm

Just to let people know I received a check for 1000.00 in the mail today. I'm still worried that it isn't legir so I will be calling tomorrow.

Vickie
April 27, 2013 at 9:58 am

Also, I got the questionnaire with no problem, but now that the checks are being issued my 1 year forward on my mail has run out. Would'nt you think they would have added a spot on the questionnaire about updating your address? If you were forclosed on, most likely you don't live at that address anymore?? Especially a few years later?

Vickie
April 27, 2013 at 9:57 am

Aos, I got the questionnaire with no problem, but now that the checks are being issued my 1 year forward on my mail has run out. Would'nt you think they would have added a spot on the questionnaire about updating your address? If you were forclosed on, most likely you don't live at that address anymore?? Especially a few years later?

Norma
April 27, 2013 at 2:22 am

I called on the 12th, the 18th and the 22nd until I got some kind of answer. I was originally told in March to send a certified check to update my mailing address! I did, yet the check went to the address of the vacated foreclosed property. I was told the check went out on 4/12 but I have not received as of today 4/26. They are supposed to be sending forms to reissue the check, but I will hold my breathe. This company has no clue and I am amazed at the lapsidasical way they mail out money! What was so hard about sending mailers out to verify addresses prior to mailing actual checks? I wonder how many are really still living in their foreclosed property who were part of the law suit ,, , what do I do if I get no forms to reissue the check? Who heck do I call? No one at Rust Consulting seems to know anything if its no on some kind of script.

Terry
April 23, 2013 at 11:08 pm

The check came by certified mail. I called the number and I was transferred to rep who did not know anything. I was not convinced it was reputable until this blog...thank you

andre
April 20, 2013 at 1:08 pm

i have called 2to3 time from the date of the 12th to fine out about the payments. and it the same thing that they tell me .they dont know when its going out or how much. i cant see y if u have the # on the card they sended to u and your name . y it cant be looked up to see if your check have been sended.

Stephanie
April 19, 2013 at 12:40 pm

I just wanted to share that I called Rust Consulting to update my address as they had my address from a year ago. They said that they will mail me a form... TO MY OLD ADDRESS ON FILE, I can wait for it to be forwarded to me then fill it out and mail it back to them.

I asked, well what about the check that was mailed? She said once they receive the updated address information, they will stop payment on the check issued and reissue. They could not update my address over the phone. I gave them the loan numbers and everything needed to verify who I was but no.. I have to wait for the forwarded form.

This reminds me of the bank trouble that started this. Lost forms, lack of action and drones answering phones with no information.