The Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board recently extended the deadline for free foreclosure reviews until September 30, 2012. Home owners who think they would benefit from a free, independent review are encouraged to submit their requests now.
The former deadline was July 31, but the agencies extended it to allow more home owners to take advantage of this offer. The review is intended for home owners who believe they suffered financial harm as a result of the foreclosure process. Their case will be reviewed for free, and so far, nearly 200,000 have taken advantage of this opportunity. Currently, there are over 150,000 files under review.
The OCC has reached out to over 4 million borrowers thus far, and they are also requiring servicers to pay for advertising that brings attention to the review option. On April 13, 2011, the OCC first issued consent orders against 12 mortgage servicers. This particular review differs from the $25 billion servicing settlement brought against five of the largest servicers by federal and state officials.
This review is for borrowers who believe they were the victims of foreclosure servicing errors between 2009 and 2010. If during the review it is discovered that financial harm did occur, borrowers may be entitled to a modification, lump-sum payments, rescission of foreclosure, and corrections on credit reports. The review will determine if borrowers were not approved for modifications but should have been, or if borrowers received lack of proper notification during the foreclosure process.
To qualify for the free foreclosure review, the property in question must be the borrower’s primary residence. Additionally, the loan must be serviced by a participating servicer.