Compensation for Homeowners Hurt by Wrongful Foreclosure
Eligibility for compensation for wrongful foreclosure.
If your home was in some stage of foreclosure during 2009 or 2010 you may be eligible for compensation.
Under a new program announced by the Office of the Comptroller of the Currency (OCC), homeowners whose homes were in the process of foreclosure during 2009 or 2010 may be eligible for compensation from their lender.
The federal government appears ready to finally take action against lenders who either made mistakes during the foreclosure process, or intentionally took shortcuts that resulted in harm to homeowners.
Widespread and Serious Irregularities Found
According to John Walsh, Acting Comptroller of the Office of the Comptroller of the Currency (OCC) the Feds discovered “widespread and serious irregularities in the most routine financial and legal steps in the foreclosure process.”
In a recent speech , Walsh said that the OCC intends to take enforcement action to make sure homeowners in foreclosure receive appropriate legal protection including due process of law.
4.5 million homeowners Eligible for Review
Under the OCC’s review process, every borrower who was in some stage of foreclosure in 2009 and 2010 has a right to request a review of their case if they think they were financially harmed because of lender misconduct.
The OCC estimates that there were 4.5 million foreclosures during 2009 and 2010 and each of those foreclosures are eligible for review—either by homeowner request or by random “audits” of paperwork by OCC regulators.
The review process hasn’t started yet. The OCC plans a massive campaign to inform homeowners of their rights under the review and compensation process.