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Foreclosed Households May Qualify for Settlement Payment
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Foreclosed Households May Qualify for Settlement Payment
More than 19,000 foreclosed households in Oregon are eligible to receive a payment of $840 or more through the National Mortgage Settlement.
To be eligible for the settlement payment, the households must have lost their homes to foreclosure between January 1, 2008 and December 31, 2011. Furthermore the households must have had a home loan that was serviced by one of the five major loan servicers that are part of the National Mortgage Settlement. These loan servicers are Ally/GMAC, Bank of America, CITI, JP Morgan Chase, and Wells Fargo.  Together the servicing portfolios of these particular loan servicers represent the majority of all home loans in Oregon.
While the minimum amount of each payment per household will be no less than $840, the actual amount of each payment will likely be much higher. The final payment each household receives depends on the total number of eligible households who file an accepted claim. If more households file an accepted claim from Oregon, more settlement money will come to Oregon. The deadline to file a claim is January 18, 2013, and the payments are expected to be mailed in May 2013.
Since mid-September the National Mortgage Settlement Administrator has been mailing notice letters and claim forms to potentially eligible households throughout Oregon. These notices are sent to the previously foreclosed households at the mailing addresses the loan servicers have on record. Since these households are in transition it is not known how many of these households will actually receive these notices and claim forms.
In order to help find these hard to reach households, OHCS is assisting with a related outreach campaign. This outreach campaign includes transit advertising in Bend, Medford, Portland Metro, and Salem. It also includes advertisements in daily and weekly newspapers across the state. These ads will begin the week of October 15th and run through the end of the year.
The National Mortgage Settlement also applies to existing borrowers who have a home loan that is serviced by the same major loan servicers (Ally/GMAC, Bank of America, CITI, JP Morgan Chase, and Wells Fargo). Even though these households have not been foreclosed upon, they may be eligible for some other benefits offered as a result of the National Mortgage Settlement. Existing borrowers may be eligible for either a loan modification or a principal reduction from their existing loan servicer. Click here to learn more about the portions of the National Mortgage Settlement that apply to existing borrowers.
Anyone who knows someone who lost their home in 2008, 2009, 2010 or 2011 should encourage them to call the National Mortgage Settlement at 1-866-430-8358 to see if they are eligible to file a claim.