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Foreclosed Unfairly? A Review Might Help You

Did a bank make a costly mistake with your home?
Apply now for the Independent Foreclosure Review

Updated June 29, 2012

If your home was wrongfully in foreclosure in 2009 or 2010 because of a bank error, you could receive thousands of dollars through a current program.

The Independent Foreclosure Review is taking place now. Homeowners have to return a form by Sept. 30, 2012 to have their foreclosure case reviewed. Bank regulators will review your case and determine if you should receive money because of bank errors. The review covers most major banks.

If you are eligible for this program, your loan servicer should have already sent you a letter and application form. The letter and form are legitimate. (Here is a sample of the form sent out through Wells Fargo.)

If you need a form or have questions about the program, visit www.independentforeclosurereview.com or call (888) 952-9105.

Possible bank errors include:

  • The mortgage balance at the time of the foreclosure action was more than you actually owed.
  • You were doing everything the modification agreement required, but the foreclosure sale still happened.
  • The foreclosure action occurred while you were protected by bankruptcy.
  • Fees charged or mortgage payments were inaccurately calculated, processed, or applied.
  • The foreclosure action occurred on a mortgage that was obtained before active duty military service began and while on active duty, or within nine months after the active duty ended and the service member did not waive his or her rights under the Servicemembers Civil Relief Act.

Homeowners could receive as much as $125,000 if they lost their home but never defaulted on their mortgage. More common settlements are reportedly between $1,000-15,000.

This program is separate from the National Mortgage Settlement, a $25 billion settlement in which five major banks will help homeowners who lost their homes or are facing foreclosure. For more information, go to nationalmortgagesettlement.com.

For more information on any consumer matter, contact Consumer Affairs at (800) 593-8222.

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