signing document

Government Program to Review 2009 and 2010 Foreclosures

The U.S. Government has kicked off a new program that allows homeowners who were foreclosed in 2009 and 2010 to request an "independent" review of their mortgage foreclosure if their loan was serviced by one of 14 servicers, including Bank of America, Chase and Wells Fargo, whose servicing and foreclosure processes were found to have "significant weaknesses".

Under the program, the Government is sending letters to 4.5 million homeowners (where are they sending the letters to if they are going to former homeowners who lost their homes in foreclosure) informing them of the new program through which they may receive restitution for "mistakes" made in the foreclosure process. Homeowners are not eligible to receive their homes back but are eligible for a cash payment if their servicer is found to have taken illegal actions in servicing the loan and foreclosing the mortgage.

Critics of the program call it a sham since consumer groups were not consulted in formulating the steps to be taken in the review.

A website has been set up to provide consumers with more information - Consumers can also call (800) 896-3619 for more information to to determine whether they are eligible for a independent foreclosure review.