2013-01-10 / News

Deadline to apply for improper foreclosure

Attorney General Peter Kilmartin is reminding Rhode Island residents who lost their primary residence due to an improper foreclosure process between Jan. 1, 2008, and Dec. 31, 2011, to file a claim for funds under the $25 billion mortgage settlement before the deadline on Friday, Jan. 18. Those borrowers who are eligible had mortgages serviced by Ally, Bank of America, Citi, J.P. Morgan Chase and Wells Fargo.

The settlement, which took effect in April 2012, earmarked approximately $1.5 billion in payments for 2 million borrowers nationwide who lost their homes to foreclosure during that period and had their loan serviced by one of the settling servicers. The exact payment will depend on the total number of borrowers who participate. Payment checks are expected to be mailed later on this year.

In October, Kilmartin mailed approximately 5,500 packages to eligible residents. To date, 2,398 claims have been completed and returned. Borrowers who believe they may qualify for a payment but who did not receive a notice because they have moved should contact the settlement administrator at 866-430-8358.

“It is not too late to file a claim for a cash payment if you believe you were improperly foreclosed upon by one of the five mortgage service providers who are part of this national settlement,” said Kilmartin.

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