National Mortgage Settlement Independent Foreclosure Review (IFR)
Who is Eligible for Assistance in 2012?
***Application Deadline Extended to December 31, 2012!***
The Federal Reserve Board issued enforcement actions against four large mortgage servicers. A number of servicers supervised by the Office of the Comptroller of the Currency are also required to participate. If your primary residence was involved in a foreclosure process between January 1, 2009 and December 31, 2010, you may qualify for an Independent Foreclosure Review. The Independent Foreclosure Review (IFR) will determine whether individual borrowers suffered financial injury and should receive compensation or other remedy because of errors or other problems during their home foreclosure process. There is an $80 Billion fund available to Borrowers who were wrongfully foreclosed on.
The deadline to submit your request has been extended to December, 31, 2012. Requests for Review Forms must be submitted online or postmarked no later than December 31, 2012 so please do not hesitate to contact a foreclosure defense attorney to find out if you qualify.
Listed below, you will find a list of the Lenders/Servicers currently participating in the Independent Foreclosure Review (IFR).
Because of the complexity of the mortgage market and the National Mortgage Settlement Agreement, which will be implemented over a three-year period, borrowers will not immediately know if they qualify for relief. If you are not sure if you qualify, BE SURE TO SUBMIT YOUR APPLICATION BEFORE DECEMBER 31, 2012!
Borrowers from states who did not sign the settlement will not be eligible for any of the relief directly to homeowners. Borrowers from Oklahoma will not be eligible for any of the relief directly to homeowners because Oklahoma elected not to join the settlement.
The settlement provides assistance for:
- Homeowners needing loan modifications now, including first and second lien principal reduction. The servicers are required to work off up to $17 billion in principal reduction loan modifications and other forms of loss mitigation nationwide. Eligible borrowers will by contacted by the Servicers and will receive letters offering principal reductions or other modifications starting in June 2012. This modification process will continue for approximately 3 years. State attorneys general anticipate the settlement’s requirement for principal reduction will show other lenders that principal reduction is one effective tool in combating foreclosure and that it will not lead to widespread defaults by borrowers who really can afford to pay.
- Borrowers who are current, but underwater. Eligible borrowers will be able to take advantage of today’s historically low interest rates by refinancing their mortgage despite their negative equity. Servicers will have to provide up to $3 billion in refinancing relief nationwide.
- Borrowers who lost their homes to foreclosure between Jan. 1, 2008 and Dec. 31, 2011. Cash payments will be distributed to borrowers who receive and return a claim form. There is no requirement to prove financial harm and borrowers will not have to release private claims against the servicers nor will they have to relinquish the right to participate in the independent review process being conducted by federal banking regulators. $1.5 billion is expected to be distributed nationwide to some 750,000 borrowers.
For more information, please visit http://www.nationalmortgagesettlement.com/