Americans whose real estate investments got them in hot water -- or under water -- now have extra time to get some money back.
Up to 4.3 million homeowners foreclosed on in 2009 and 2010 had until the end of this month to request an independent review of how that foreclosure was handled.
But only 90,000 eligible homeowners have submitted claims since the government set up the process with 14 mortgage servicers last April.
So the feds have extended the deadline until july 31.
Independent consultants are prepared to investigate foreclosure abuses. If reviews find consumers suffered "financial injury," lenders could have to repay anything from a single fee, to the full cost of a wrongfully-reposessed home.
Wronged homeowners have a second avenue to getting money back from shady foreclosures.
Two weeks ago, the Obama Administration and 49 states brokered a deal with the five largest U.S. banks. (Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial). "They punished American taxpayers, who have had to foot the bill for foreclosures that could have been avoided," says U.S. Attorney General Eric Holder.
That deal seeks to right foreclosure wrongs such as robo-signings and seizures without proper paperwork.
It codifies mortgage relief, including reducing principal balances, facilitating low-interest refinancing, and returning up to $2,000 to homeowners who lost their property. (CNN)
For more info, go to http://www.justice.gov/opa/pr/2012/February/12-ag-186.html
