April 23, 2013
In February, federal banking regulators reached a $9.3 billion pact with 13 major lenders to settle claims of foreclosure abuses like bungled loan modification and flawed paperwork. Under the deal, homeowners can receive up to $125,000 in cash relief.
Unfortunately, as some of the 1.4 million homeowners entitled to settlement funds went to go cash their much-anticipated checks, they found themselves on the receiving end of some bad news– the “funds were not available.”
Since the settlement, there have been a number of problems. For example, in Ohio, problems arose at Rust Consulting, a firm chosen to distribute the checks. After collecting the $3.6 billion from the banks, Rust had failed to move the money into a central account for distribution. Second, there have been bureaucratic delays like those arising from checks made out jointly to estranged divorcees.
Even though the settlement is supposed to bring relief to million of homeowners, this fiasco of “bounced checks” is just one of the latest “runarounds” leaving homeowners increasingly exhausted at the process.
Read about settlement here.| Permalink