If you’re like many over the past couple of years, you may have dealt with foreclosure … or you may even be dealing with it right now. However, according to a new settlement, you may be due some relief, or at least a little compensation for the ordeal.
Under a deal announced on January 7, 2013, ten banks will pay $8.5 billion for foreclosure abuse and foreclosing on families that should’ve been allowed to stay in their homes. Money is also allocated for future foreclosures.
People who were foreclosed on, or in the foreclosure process, in 2009-2010, with one of the following lenders: Bank of America, Citigroup, Wells Fargo, JPMorgan Chase, MetLife Bank, PNC, Sovereign, Sun Trust, U.S. Bank and Aurora.
Nothing. If you fall into the category (above), then you will automatically receive compensation, anywhere from $1,000 to $100,000 based on circumstances. The settlement is saying people may see money as soon as March 2013.
According to USAToday.com, there were 3.8 million borrowers who had homes foreclosed on between 2009 and 2010.
Is a few thousand dollars for people who were late on mortgages, tried to work with banks, received no help and forced to gather their families and leave their homes really enough?
Some say are saying no and calling it “blood money” in the media, where banks get to wash their hands at the expense of the homeowners who went through hell.
“This was supposed to be about compensating homeowners for the harm they suffered. The payout guidelines already allowed wronged homeowners less compensation than the actual damages to them,” Diane Thompson, a lawyer with the National Consumer Law Center, told KCRA.com.
“It’s another get out of jail free card for the banks. It caps their liability at a total number that’s less than they thought they were going to pay going in,” Thompson went on to say.
What do you think about the settlement? Sounds good, or too little too late?
Image: Stuart Miles