Payment claim forms are going out to thousands of Connecticut borrowers whose homes were lost 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, announced Attorney General George Jepsen in a press release.
Eligible borrowers were foreclosed upon during that period and had mortgages with Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo, the nation’s five largest mortgage servicers who agreed to the settlement with the federal government and attorneys general for 49 states and the District of Columbia.
The settlement, which took effect in April, earmarked $1.5 billion in payments for 1.75 million borrowers who lost their homes to foreclosure during that period. The payments will be at least $840, and will very likely be higher, depending upon the number of borrowers who decide to participate.
“This payment is intended as partial compensation for the illegal conduct of the mortgage servicers,” said Attorney General Jepsen, who helped to negotiate the settlement agreement. “Unfortunately it will not help everyone, nor restore homes that were lost to foreclosure. But it represents help that otherwise would not have been available to borrowers, who can still pursue any legal claims they have against the servicers.”
Nearly 9,000 notices are going out in Connecticut based on 7,600 eligible loans. Co-borrowers with different addresses will each be sent a notice package. If both return forms, they will split the payment amount.
Attorney General Jepsen said the one-page claim forms are simple to complete. He Connecticut borrowers to fill out and return them as soon as possible in the envelope provided, or file their claims online at www.nationalmortgagesettlement.com. The deadline for all claims is Jan. 18, 2013. Payment checks are expected to be mailed in 2013.
Last week, the national settlement administrator mailed notification postcards to the eligible borrowers nationwide. Beginning today and continuing through Oct. 12, packets containing a letter from the Attorney General, claim forms, instructions and other explanatory information are being mailed to eligible borrowers in Connecticut.
Borrowers who believe they are eligible, but did not receive notification should e-mail email@example.com or call a toll-free number: 1-866-430-8358. The same contacts may be used by borrowers who have questions or need help filing their claim. The information line is open Monday through Friday from 8 a.m. to 8 p.m.