Connecticut Homeowners will Receive Payments under the National Mortgage Settlement

According to this article, several Connecticut residents who lost homes to foreclosure between January 1, 2008 and December 31, 2011 may be eligible for payments under the $25 billion National Mortgage Foreclosure settlement.  The settlement, which took effect April 1, 2012, was between the nation’s five largest mortgage servicers, the federal government, and attorneys general for 49 states and the District of Columbia.  It resulted from state and federal investigations claiming the servicers “routinely signed foreclosure-related documents outside the presence of a notary public and without personal knowledge that the facts contained in the documents were correct…. and committed various errors and abuses in their mortgage processes.” 

Eligible borrowers had mortgages with Ally/GMAC, Bank of America, Citi, JPMorgan Chase, and Wells Fargo.  Payments, intended as partial compensation for the servicers’ illegal conduct, will be at least $840. Around 9,000 notices are going out in Connecticut and the deadline for submitting claims is January 18, 2013. Checks will be mailed in 2013. 

For more information on the settlement and how to submit a claim, visit the national mortgage settlement website.