Robo-signed foreclosures have recourse

WASHINGTON – Nov. 1, 2011 – The Federal Reserve Board announced today that some borrowers who think lender robo-signing hurt them during foreclosure can complain directly to the Federal Reserve.

The independent reviews apply to ex-homeowners who went through foreclosures serviced by four large mortgage service firms: GMAC Mortgage, HSBC Finance Corporation, SunTrust Mortgage and EMC Mortgage Corporation.

The four lenders must hire independent reviewers as part of enforcement actions issued by the Federal Reserve in April 2011. In addition, they must compensate borrowers for any “financial injury” that resulted from paperwork problems used during the foreclosure process. Borrowers are eligible for a review if their primary residence was in the foreclosure process in 2009 or 2010, even if the foreclosure wasn’t completed.

In addition to the four banks, a number of other services must conduct similar reviews, though the Office of the Comptroller of the Currency supervises them.

The review will specifically look for the impact on homeowners resulting from errors, misrepresentations or other deficiencies. The Federal Reserve will monitor the program and the servicers’ outreach efforts. Review requests must be received by April 30, 2012. There are no costs associated with a review.

To apply for a review, individuals may call (888) 952-9105, Monday through Friday from 8 a.m. to 10 p.m., and Saturday from 8 a.m. to 5 p.m. Individuals can get more information about the review through a website set up by the servicers, www.IndependentForeclosureReview.com. In addition, servicers will run an advertising campaign and contact borrowers who may be eligible to participate.

© 2011 Florida Realtors®

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fluidideas@gmail.com

fluidideas@gmail.com

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