Millions of borrowers may have missed foreclosure review
Posted on Monday, December 31, 2012 at 4:30:41 PM
In the wake of the housing market collapse, when it became apparent that millions of homeowners may have been wrongfully foreclosed upon, a review system was established among numerous mortgage lenders, servicers and government agencies.
However, the deadline to enroll in this program is quickly approaching, and it's feared than many borrowers may have missed their chance to receive compensation if it's found their properties were wrongfully repossessed, USA Today reports.
"The response numbers are not terribly impressive," Bruce Mirken of the Greenlining Institute told the newspaper.
Earlier this year, an estimated 4 million previous homeowners were contacted with an offer to have their foreclosure cases reviewed free-of-charge. However, by the middle of December, only 356,000 individuals made an effort to respond.
According to the Office of the Comptroller of the Currency, compensation could range from a few hundred dollars to more than $100,0000. For this reason, many experts are surprised there has not been a larger turnout.
Meanwhile, Opportunity Agenda senior policy fellow James Carr told USA Today the language of the letters notifying former borrowers of the initiative many have been too complex, resulting in the poor feedback.