$1.5 billion settlement with five mortgage-providers announced
State Attorney General Linda Kelly said some Pennsylvania foreclosure victims may be eligible for compensation through a multi-state $1.5 billion settlement announced today.
HARRISBURG – Attorney General Linda Kelly today announced that official notifications are being sent to approximately 29,000 Pennsylvania borrowers who lost their homes to foreclosure between Jan. 1, 2008, and Dec. 31, 2011, and may be eligible for payment as part of the $25 billion national mortgage foreclosure settlement.
Eligible borrowers had mortgages serviced by Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo, the nation’s five largest mortgage servicers that agreed to the settlement with the federal government and attorneys general for 49 states and the District of Columbia, a news release said.
The settlement, which took effect in April, set aside 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. Kelly said the national settlement administrator has mailed notification postcards to eligible borrowers nationwide. The postcards explain that consumers may be eligible for a portion of the foreclosure settlement and advises them to review the claim packets, which are being mailed this week.
In Pennsylvania, the packets contain an official notification letter from Kelly along with a claim form, instructions and answers to frequently asked questions. Those packets are being mailed to 28,448 eligible borrowers beginning today and continuing through Oct. 12. Kelly urged eligible Pennsylvania borrowers to complete their claim forms and return them as soon as possible in the envelope provided. Claim forms can also be filed online at www.nationalmortgagesettlement.com.
The deadline for filing all claims is Jan. 18, and payment checks are expected to be mailed in mid-2013, the release said.
