We've been reporting on it for months, and if you haven't taken action, now is the time time to do so. If you feel you qualify for the National Mortgage Settlement, and you haven't yet applied, you need to do so ASAP.
Back in Spring 2012, 49 Attorney Generals reached a settlement with the 5 biggest banks. The settlement reads that borrowers who were wrongfully foreclosed on, or lost their homes from foreclosure by lenders from Jan. 1, 2008, to Dec. 31, 2011 may be eligible for fair compensation. A great deal of borrowers have already been sent eligibility letters. Roughly $1.5 billion in settlement money will be distributed among eligible borrowers.
According to Minnesota AG Swanson, eligible borrowers should have been contacted by Wells Fargo, Bank of America, Citi, Chase or GMAC/Ally if they were determined eligible. It's possible that some homeowners fell through the cracks. To find out if you were one, go to http://nationalmortgagesettlement.com/.
Swanson pointed out that part of the problem is that there's a certain number of people who aren't in that home anymore. This is why it's essential to get the word out. For months we at LoanSafe have been giving out information on the National Mortgage Settlement.
The AG also has warned homeowners to be aware of scams related to this program. There has already been many scams for the National Mortgage Settlement, such as deceptive firms charging fees to file the application for borrowers. No fees are necessary for this and it is a free process. Swanson said borrowers can contact her office with questions. The most recent deadline for submitting a claim form is Jan. 18, 2013.