The state is mailing claim forms to thousands of Connecticut borrowers who may be eligible for a slice of the $1.5 billion settlement pool reserved for Americans who illegally lost homes to foreclosure the past three years, authorities say.
State Attorney General George Jepsen said Monday affected borrowers were foreclosed on between Jan. 1, 2008 and Dec. 31, 2011.
Eligible borrowers were foreclosed upon during that period and had mortgages with Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo, the nation’s five largest mortgage servicers who agreed to the settlement with the federal government and attorneys general for 49 states and the District of Columbia.
The settlement, which took effect in April, earmarked $1.5 billion in payments for 1.75 million borrowers who lost their homes to foreclosure during that period. The payments will be at least $840, and will very likely be higher, depending upon the number of borrowers who decide to participate, Jepsen said.
“This payment is intended as partial compensation for the illegal conduct of the mortgage servicers,” said Jepsen, who helped to negotiate the settlement agreement. “Unfortunately it will not help everyone, nor restore homes that were lost to foreclosure. But it represents help that otherwise would not have been available to borrowers, who can still pursue any legal claims they have against the servicers.”
Nearly 9,000 notices are going out in Connecticut based on 7,600 eligible loans, he said. Co-borrowers with different addresses will each be sent a notice package. If both return forms, they will split the payment amount.
Jepsen urged Connecticut claimants to fill out and return them as soon as possible in the envelope provided, or file their claims online at www.nationalmortgagesettlement.com.
The deadline for all claims is Jan. 18, 2013. Payment checks are expected to be mailed in 2013.
