presented by: Gary Massey
Tenessee Foreclosure Government OrganizationThe government has created two new initiatives that aim to compensate anyone who was a victim of banking abuses during the U.S. foreclosure crisis, according to The Huffington Post. It is a simple and commendable idea, but for victims seeking a settlement, it may be confusing to determine eligibility, if he or she can apply, and when a check may be received in the mail for compensation.
In order to help individuals receive the compensation they are entitled to, the following is information on two different government efforts that may provide homeowners a financial settlement.
National Mortgage Settlement
The National Mortgage Settlement is a deal struck by the federal government and attorneys general from 49 states in conjunction with five of the biggest banks in the U.S. Officials opted for a “one-size-fits-all” solution; therefore, everyone who qualifies for compensation will receive the same amount of money. Paperwork will be minimal for settlement efforts as homeowners only have to check a box saying they were harmed. Currently, the best guess for when individuals will receive compensation is in the first three months of 2013. The amount of compensation each person will receive will depend on the number of respondents and may range from $1,500 to $3,000.
Independent Foreclosure Review
The Independent Foreclosure Review is slightly more complicated as the review aims to calculate each homeowner’s “exact financial injury.” The Review was conceived and overseen by federal banking regulators, and the effort began in November of 2011 when over 4 million letters were sent to homeowners. The Post reports that as of May 24, less than 200,000 homeowners had replied, and respondents only have until July 31 to file for this settlement.
Housing counselors feel the underwhelming response may be attributed to homeowners being confused or intimidated by the forms. Also, homeowners must obtain forms with an individual code, which can only be received in the mail or by calling (888) 952-9105. If not sent in, the case may not be reviewed. Regulators have not released information on how “financial injury” will be calculated and when homeowners can expect to receive compensation, making things a bit more unclear.
Finding Assistance with Your Foreclosure
The foreclosure lawyers in Chattanooga with Massey & Associates, P.C. understand how challenging the foreclosure process is and how difficult it can be to cope with the loss of your home. Our experienced legal team is dedicated to helping Tennesseans try and avoid foreclosure, and we will discuss with you all of your legal rights and options in your case. Call us at (423) 396-0720 to see how we can assist you.
Gary Massey, Jr., is a well-known courtroom advocate practicing law in Chattanooga, Tennessee. Gary is a native of Tennessee who began practicing law in 1998. He graduated from Cumberland School of Law where he was ranked in the top 3% of his class and was an editor of the Cumberland Law Review.
