Most homeowners wronged during the foreclosure fiasco will receive only a few hundred dollars in compensation from a settlement reached between the federal government and banks.
About 2.4 million borrowers of the almost 4 million eligible homeowners will receive $300 after lenders gave out misinformation, lost documents and committed other misdeeds.
Two years ago, the Independent Foreclosure Review proclaimed homeowners who suffered “financial injury” could get as much as $125,000.
It now turns out only 1,135 borrowers will see this amount. This small group mostly includes members of the U.S. military who had their homes taken away from them, as well as 53 non-military homeowners who endured foreclosure even though they didn’t default on their loans.
To Learn More:
For Most Homeowners, Gov’t Foreclosure Deal Brings A Few Hundred Bucks (by Paul Kiel, ProPublica)
Scant Relief in Foreclosure Payouts (by Alan Zibel and Dan Fitzpatrick, Wall Street Journal)
Government Accused of Allowing Bank of America to Investigate Itself about Foreclosures (by David Wallechinsky and Noel Brinkerhoff, AllGov)
Bank of America Smacked with Foreclosure Fraud Lawsuits (by Matt Bewig, AllGov)
Bank of America Forecloses on Houses without Mortgages (by Noel Brinkerhoff and David Wallechinsky, AllGov)