Are you eligible for a foreclosure review?

Thu, Jul 26, 2012

Bankruptcy

Are you eligible for a foreclosure review?If you were involved in a foreclosure during January 1, 2009 and December 31, 2010 with certain lenders, you may be eligible to have your foreclosure reviewed to see if your case was conducted improperly.

In April 2011, the Federal Reserve Board decided that several mortgage companies must conduct free reviews of certain foreclosures. In November 2011, they issued this press release about the review process.

The review process is looking for errors or fraud to see if the homeowner might have been a victim of an improper foreclosure. This review of the foreclosure process might result in a financial reward for the borrower if the foreclosure is found to be flawed. Previous deadlines to request the review have been extended until September 30, 2012.

Most borrowers should have been contacted last winter already. However, some borrowers may not have been. To find out further information check out this website that has been set up to offer borrowers further help. The Independent Foreclosure Review website offers a video, FAQs, and help in completing the form. It has a vast array of information meant to help affected borrowers through the process.

The foreclosure review process is not without its critics. Many find the process confusing and are uncertain of how to proceed. Other borrowers report that they do not see the point of trying for something that they may not benefit from or get discouraged halfway through. Some even ignored the letters they received and threw them away thinking they were scams or junk mail. And of course, there are even a few scammers out there trying to charge for a “foreclosure review”.

If you have further questions about whether or not your loan falls under the foreclosure review and how to proceed, consult this PDF on the Federal Reserve Board’s site. SmithLaw finds it to be quite comprehensive. It is a good starting point for those seeking help or clarification about the review process.

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