Attorney General Kilmartin reminded Rhode Island residents who lost their primary residence due to an improper foreclosure process between January 1, 2008 and December 31, 2011 to file a claim for funds under the $25 billion National Mortgage Settlement before the January 18, 2013 deadline. Those borrowers who are eligible had mortgages serviced by Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo.
The settlement, which took effect in April 2012, earmarked approximately $1.5 billion in payments for two 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 upon the total number of borrowers who decide to participate. Payment checks are expected to be mailed in mid-2013.
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 directly to provide that information or visit www.nationalmortgagesettlement.com to download and complete a claim form.
"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 Attorney General Kilmartin. The one-page claim forms are simple to complete. However, borrowers who have questions or need help filing their claim can contact the settlement administrator, toll-free, at 1-866-430-8358, or send questions by email to administrator@nationalmortgagesettlement.com. The information line is staffed Monday through Friday from (7 a.m. to 7 p.m. Central).
Kilmartin noted eligible borrowers do not need to prove financial harm to receive a payment, nor do they give up their rights to pursue a lawsuit against their mortgage servicer. Eligible borrowers may get a payment from this settlement even if they participate in another foreclosure claims process. However, any payment received may reduce payments borrowers may be eligible to receive in any other foreclosure claim process or legal proceeding.