In a recent article by The Associated Press, Utah Homes that have been Foreclosed upon in 2009 and 2010, are now under review due to Lenders seizing to quickly and not reviewing documents. About 4 million homeowners who may have been improperly foreclosed upon are getting an opportunity to have their cases reviewed after investigations from the government.
Here are some of the nation’s 14 largest mortgage servicers which are under review— Citibank, Bank of America, JPMorgan Chase and Wells Fargo
The orders require the lenders to pay homeowners when a “borrower suffered financial injury.” There is no minimum or maximum dollar amount identified.
Regulators say independent consultants will also review the cases and the reviews would take many months. If a consultant finds a lender erred, it will conduct follow-up reviews on other cases to see if the lender is trying to dodge blame.
“The challenge is substantial, but the steps we have required the servicers to take are vitally important to resolving these issues in a way that respects the rights of those who have been harmed and helps to restore confidence in the system,” said John Walsh, acting Comptroller of the Currency.
In the four years since the housing bust, about 5 million homes have been foreclosed upon. About 2.4 million primary mortgages were in foreclosure at the end of last year. Another 2 million were 90 days or more past due, putting them at serious risk.