Media Center

Attorney General J.B. Van Hollen Issues Reminder to Consumers:  National Mortgage Servicing Settlement Claims Deadline Approaching

 

Wisconsin's response rate percentage is the highest of all of the states, under this part of the settlement.

 

MADISON — Attorney General J.B. Van Hollen reminds Wisconsin borrowers who lost their homes to foreclosure between January 1, 2008, and December 31, 2011, and who may be eligible for cash payment under the $25 billion national mortgage foreclosure settlement, to file claims by January 18, 2013. Additional reminders were mailed to claimants last week. Borrowers who have questions or need help filing their claims can contact the settlement administrator, toll-free, at 1-866-430-8358, or send questions by email to administrator@nationalmortgagesettlement.com.

 

“While many Wisconsin residents have already submitted settlement claim forms, more than 9,500 Wisconsin residents who are eligible for the payment have not responded,” Attorney General Van Hollen said. “Relief is available to some consumers who have lost their homes to foreclosure, and I encourage all eligible residents to submit their claim forms immediately.”

 

The $25 billion National Mortgage Settlement, between 49 states' Attorneys General and the five largest mortgage servicers in the country, earmarked approximately $1.5 billion for payments to two million borrowers nationwide who lost their homes to foreclosure from 2008-2011. In Wisconsin, approximately $17.2 million is available for cash payments to more than 22,000 Wisconsin borrowers who have lost their homes to foreclosure. As of December 20, 2012, the settlement administrator reported that it had received 12,547 claim forms from eligible Wisconsin borrowers who lost their homes. So far, Wisconsin's response rate percentage is the highest of all of the states.

 

Cash payment to those who lost their homes to foreclosure in 2008-2011 is one of many “pools” of relief available to Wisconsin under the National Mortgage Settlement. Other types of relief are available to eligible residents who have not lost their homes but are struggling to make payments, or those who owe more than their home is worth. So far, Wisconsin residents have claimed more than $86 million in relief from those other “pools” of relief available under the settlement, according to the settlement Monitor's report found at http://www.mortgageoversight.com/.

 

Eligible borrowers who participate in the National Mortgage Settlement do not waive their rights to pursue lawsuits against their mortgage servicer or to participate in the Independent Foreclosure Review Process being conducted by federal bank regulators. Recent press articles have discussed a proposed settlement of that initiative, which is separate from the National Mortgage Settlement in which the state is a participant. More information about that program is available at http://www.independentforeclosurereview.com/.

 

Attorney General Van Hollen also warns consumers to beware of settlement-related scams. Relief under the settlement is free, so be especially wary if you are asked for a fee for assistance in obtaining benefits under the settlement, including loan modification. If you suspect a scam, please contact the DOJ Office of Consumer Protection (1-800-998-0700), or the Department of Agriculture, Trade and Consumer Protection (“DATCP” 1-800-422-7128). Additional information about the settlement is available at: http://www.nationalmortgagesettlement.com/.