The Press Newspaper
Claim forms are being sent to 64,428 borrowers in Ohio who lost homes to foreclosure between Jan. 1, 2008 and Dec. 31, 2011 and who may be eligible for payment under the $25 billion National Mortgage Foreclosure settlement.
Ohio Attorney General Mike DeWine announced the distribution last week.
Eligible borrowers had mortgages with Ally/GMAC, Bank of America, Citi, JPMorgan, and Wells Fargo – which agreed to the settlement with the federal government and attorneys general of 49 states and the District of Columbia.
The settlement took effect in April and earmarked $1.5 billion in payments for 1.75 million borrowers who lost their homes to foreclosure during the four-year period.
DeWine estimated the payments will be at least $840 and could be higher, depending on the number of borrowers who decide to participate.
He is urging eligible borrowers to complete their claim forms and return them quickly or file online at www.nationalmortgagesettlement.com.
The deadline for all claims is Jan. 18, 2013.
He described the payments – which are expected to be mailed next year – as partial compensation “for the illegal conduct of the mortgage servicers.”
“Borrowers don’t have to give up their legal rights to participate,” DeWine said. “They are free to participate in this settlement and also pursue other legal remedies for the loss of their home if they choose.”
In Ohio, packets containing a letter from DeWine’s office and claim forms will be mailed to the borrowers through Oct. 12.
Eligible borrowers don’t need to prove they’ve been harmed financially to receive a payment, DeWine said.
The settlement stemmed from a federal investigation, which claimed the five lenders signed foreclosure documents without a notary public present and without personal knowledge the information in the documents was correct.
An index of 100 is equal to the average level of contract activity during 2008, which marked the end of five consecutive record years of existing home sales.