Home » Qualified homeowners to get national mortgage settlement information in mail this week

Qualified homeowners to get national mortgage settlement information in mail this week

FRANKFORT, Ky. (Sept. 19, 2012) —Two million postcard notices have been mailed this week to U.S. homeowners who lost their homes to foreclosure between Jan. 1, 2008 and Dec. 31, 2011.

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As part of the national mortgage settlement, notices were mailed Sept. 17 to approximately 5,395 Kentucky homeowners who were foreclosed upon during the relevant time period, and who are now eligible for payments totaling $10.7 million., according to Attorney General Jack Conway.

Forty nine state attorneys general reached the historic $25 billion settlement with five of the nation’s largest banks in February of 2012. Kentucky received a total of $58 million under the settlement.

Depending upon the number of eligible participants, the amount payable to these borrowers will be up to $2,000 per eligible household. To be eligible, homeowners must have had loans serviced by Ally/GMAC, Bank of America, Citi Bank, JP Morgan Chase or Wells Fargo and lost their homes either through sheriff sale, short sale or deed in lieu of foreclosure.

“In communities across Kentucky and the nation, homeowners affected by the mortgage foreclosure crisis are getting much needed relief as a result of this historic settlement,“ Conway said. “This settlement is about providing second chances for those who have lost their homes or owe more than their homes are worth. If you believe you are eligible for relief under this settlement, please watch for important communications from my office in the coming days and weeks.“

The postcard notice was mailed to the last known address of eligible borrowers based on records obtained from the banks. The postcard will be followed by a letter on Office of the Attorney General letterhead instructing these borrowers how to apply for monetary benefits under the settlement. A copy of the notice is available at http://ag.ky.gov/mortgagesettlement/Documents/mortgage_settlement_notice.pdf.

A follow-up letter with paperwork to complete will be sent directly to consumers from the Attorney General in October. An example of the letter may be viewed here. Homeowners should receive a letter and claim form from the Attorney General by Oct. 19.

What to do if you do not receive a notice and believe you are eligible

Because most homeowners who lost their home have moved on to a new address, Conway wants to make sure they have an opportunity to participate in this settlement payout. Homeowners who lost their home to foreclosure, short sale or deed in lieu of foreclosure and do not receive this postcard notice and follow up letter should call a toll- free telephone number that has been set up to accept information and provide application forms for payment. The toll free number to contact is 1-866-430-8358. A live operator should be available at this number from 6 a.m. to 6 p.m. daily. Otherwise, a voice message can be left for the administrator. The deadline to make a claim is Jan. 18.

Details about the settlement eligibility requirements and other benefits can be found at here.

Beware of scam artists

Conway also warns all homeowners to beware of potential scams that may surface related to this settlement. There is no cost to eligible borrowers to participate in this settlement. If anyone solicits you by telephone, over the Internet or by direct, written solicitation offering to assist you in obtaining a payment under this settlement for a fee, it is a scam and you should report it to the Attorney General‘s Office of Consumer Protection at 1-888-432-9257 option 3.

If you receive any solicitation that is not addressed from the Office of the Attorney General, you should not respond to it. This could be an attempt by a scammer to steal your identity or financial information.

For additional information and a list of frequently asked questions, visit the attorney general’s mortgage foreclosure settlement page.