Individuals who feel they fell victim to improper foreclosure practices in 2009 and 2010 will soon have a chance to fight back against lenders. The Federal Reserve is giving those who feel they were "financially harmed” during the foreclosure process the opportunity to request an independent review, and possibly even be compensated for their loss, it announced Tuesday.
The Fed is requiring GMAC Mortgage, HSBC Finance Corporation, SunTrust Mortgage and EMC Mortgage Corporation to conduct the program, and retain independent consultants for review, all of which are supervised by the Federal Reserve Board. The servicers will be required to compensate borrowers for "financial injury resulting from deficiencies in their foreclosure processes," according to a release from the Fed.
Borrowers that are eligible for such an independent review must have had their primary residence in the foreclosure process in 2009 or 2010, regardless of if the foreclosure itself was completed. Those who believe they are eligible must submit their claims by April 30, 2012, and it is free to apply.
To apply for a review, individuals may call 888-952-9105, Monday through Friday from 8 a.m. to 10 p.m. (ET), and Saturday from 8 a.m. to 5 p.m. (ET). Individuals can get more information about the review through a website set up by the servicers, www.IndependentForeclosureReview.com. In addition, the servicers will conduct an advertising campaign and send letters to borrowers who may be eligible to participate in the review to provide information, the Fed statement read.