Wrongful foreclosure payments amount to not much

Once the crash got going, foreclosures piled up on bank desks and to break the logjam banks decided to do away with the personal review of the relevant paperwork. They started “robo-signing” statements claiming that they had done such a review, even though they had not.  In literally millions of cases, they failed to catch mistakes in the paperwork or procedures they were supposed to follow and even foreclosed on some people whose payments were up to date!

Now 13 banks have agreed to pay at least something to thousands of their customers who were foreclosed improperly.  If you were foreclosed by one of these banks in 2009 or 2010, you should be getting a check, although it probably won’t be for much:  Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JP Morgan Chase, MetLife Bank, Morgan Stanley, PNC, Banco Santander’s Sovereign, SunTrust, US Bank or Wells Fargo.

Here’s a summary of the payments:

1.1 million borrowers who were foreclosed after their loan assistance had been approved will get $300 or $500.

902,935 borrowers who were not offered and loan help will get $300 or $600.

421,846 borrowers whose bank made no decision on loan help will get $400 or $800

28,287 borrowers whose bankruptcy protections were ignored will get between $3,750 and $62,500.

1,082 military borrowers whose foreclosure was improper will get $125,000.

53 borrowers who were foreclosed even though their loan was current will get $125,000.

Many think these payments should be much higher, and taking this money does not prevent you from suing.  If you can convince a lawyer you have a good case for high damages, they might take the case on contingency.

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