Daily Real Estate News | Friday, August
Regulators are granting a third extension to a program that allows home
owners who were foreclosed upon to request a free, third-party review of their
case. Home owners now have until Dec. 31 to request a review.
Originally, the Federal Reserve and the Office of the Comptroller of the
Currency had set a deadline of April 30, and then have continued to push that
date back to allow more home owners time to take advantage and spread the word.
As of May 31, only about 193,000 borrowers had requested a review, according to
The extension “provides more time to increase awareness about the Independent
Foreclosure Review and how eligible borrowers may request a review and to
encourage the broadest participation possible,” the regulators said in a
Home owners who had a foreclosure filed against them between 2009 and 2010
are eligible to request a review of their case. If errors are uncovered—such as
a home owner not getting a fair chance at a loan modification prior to a
foreclosure or an error in processing the paperwork—home owners may be
compensated. Compensation may include anything from home owners receiving a
lump-sum payment (anywhere from $500 to $125,000, plus equity) to suspension or
recession of their foreclosure to a loan modification. They also may receive a
correction to their credit report and deficiency amounts on record.
For more information, visit independentforeclosurereview.com.
Source: “Fed, OCC Extend Foreclosure Review
Deadline To Dec. 31, 2012,” Bloomberg (Aug. 2,