5 Steps to Getting Your Loan File Reviewed if You Were Foreclosed on in 2009-2010
**UPDATE – All Requests for Review Forms must be submitted online or postmarked no later than December 31, 2012. **
The period after the collapse of the housing market and automotive industries was one of America’s darkest times. The recession created all sorts of financial problems for the average American. With underwater mortgages and spiraling debt, many people were unable to continue paying their home loans. As a result, there were many home foreclosures all across the United States.
In 2011, enforcement actions against several home mortgage service firms were taken by the Federal Reserve Board. These home mortgages firms were HSBC Finance Corporation, EMC Mortgage Corporation, SunTrust Mortgage and GMAC Mortgage. The Office of the Comptroller of the Currency has required that these four mortgage companies retain independent consultants.
The primary purpose of these consultants is to construct a process flow that would enable eligible homeowners to have their mortgage loan files reviewed if these homeowners were foreclosed on during a certain period of years, which includes the years of 2009 and 2010. The review aims to discover any errors, deficiencies, or any misrepresentations that may have occurred during the foreclosure of these homes. In the event that the review discovers that errors were made, the Federal Reserve requires these large mortgage companies to make financial restitution for any damages that have resulted from these foreclosure deficiencies.
To aid with the review process, a third party administrator has created a website that has an overview of the entire process flow. A call center has also been established to be able to field calls, and these call centers will be able to provide translations in more than 200 languages. This article will also enumerate and discuss the steps that the Federal Reserve recommends that you take in order to get your loan file reviewed.
Here are the five steps you should take if you want to get your loan file reviewed.
Check Your Eligibility
The Federal Reserve has set eligibility criteria for homeowners who may want their loan files reviewed. Before you begin the review process, you should first check to see if you are even eligible for review. The first requirement is that your mortgage service provider should be among the twenty-seven firms that are listed on the official website. Another criteria is that the foreclosure on your house should have been started, made pending, or finished between the 1st of January 2009 to the 31st of December 2010. It’s not a requirement for your home to be sold. The final requirement is that the foreclosed house should be the primary residence of the person. Primary residence is defined as the home that the person resides in most of year. So, this means if your vacation home was foreclosed on, you are not eligible for review.
Look for a Letter in Your Mailbox
Homeowners who are eligible for review should have already been identified by the independent reviewers. Those people were sent a letter giving them the necessary information about the process flow. These letters were sent out by the end of 2011. If you believe that you are eligible for a review, but you haven’t received a letter or notice from the independent reviewer or your mortgage company, you should call the toll free number 888-952-9105 from 8 a.m. to 10 p.m. during the workweek and from 8 a.m. to 5 p.m. on Saturdays to request for a review form.
Get Your Records
Any responsible homeowner should have records pertaining to their mortgage and subsequent foreclosure. Gather all your files, receipts, and any relevant documents that you may have. You will definitely need all these files when you fill out your request for review form.
Fill Out and Submit Your Request for Review Form
Fill out the request for review form to the best of your ability. Make sure that it is as complete as possible. The more information you can impart about your home foreclosure, the better. Always refer back to your records and files if you are having any difficulty answering the questions. You might also want to check with the people who handled your previous transactions. Review and double check all your answers for any errors. Submit your Request for Review as soon as you are able. Don’t wait until the very last day. The deadline for filing the request is on September 30, 2012.
Now Sit Back and Wait for the Letter
This isn’t an instant review process. Don’t expect the results of the review to be released the same day you submit your request. Thousands of people have also submitted a foreclosure review. It may take some time, even up to several months, for you request to be reviewed and acted upon. Your independent review will need to have due diligence in reviewing whether you were financially harmed by your mortgage company during your foreclosure. Once your review is completed, the independent reviewer will be sending you a letter with the findings. Wait for the instructions on that letter before taking any further action.
Have you requested an independent foreclosure review? What was your experience like? Check this website for more information.