Escrow Trust Advisors | Deadline Extended for Foreclosure Review
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Deadline Extended for Foreclosure Review

Deadline Extended for Foreclosure Review

Home owners interested in a free, independent foreclosure review now have until September 30, 2012 to put in their request. The deadline was recently extended past July 31 to allow more home owners to take advantage of this offer.

The Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board issued the extension to allow those who believe they suffered financial harm during the foreclosure process to have their case reviewed. So far, nearly 200,000 people have opted in to the review.

To qualify for the review, the property must be the borrower’s primary residence and the loan must be serviced by a participating servicer. For borrowers who believe they were the victims of foreclosure servicing errors between 2009 and 2010, they are encouraged to request a free review. If it is discovered that financial harm did occur, borrowers may be entitled to lump-sum payments, a modification, rescission of foreclosure, and corrections on credit reports. Currently, there are over 150,000 files under review.

On April 13, 2011, the OCC first issued consent orders against 12 mortgage servicers. They have reached out to over 4 million borrowers who may be eligible for review, and have also required servicers to pay for advertising calling attention to these reviews. This review is separate from the $25 billion servicing settlement brought against five of the largest servicers by federal and state officials.

For borrowers who believe that modifications were not approved but should have been, or who received lack of proper notification during the foreclosure process, this review could be a way to get back on track financially.