The Foreclosed Fight Back

Many foreclosure victims now have a referee to turn to for help – the federal banking agencies’ Independent Foreclosure Review program.

Borrowers who believe they suffered financial losses due to errors in a foreclosure process on their homes, occurring between January 1, 2009 and December 31, 2010, can apply for a free review by an IFR consultant – but only until December 31.

Applicants can check their eligibility, submit a request for review form online and get full details at IndependentForeclosureReview.com.

If the third-party auditor determines that the lender was responsible for errors, deficiencies or misrepresentations in the foreclosure process, homeowners may be entitled to:

• recoup from $500 to $125,000 (plus equity),

• have the foreclosure suspended or rescinded,

• receive a loan modification or other loss-mitigation assistance and/or

• have their credit reports and records corrected.

“If your case meets the provided criteria and you can prove it, then there is a good chance you will receive payment,” says Kory Kavanewsky, CMG Mortgage, Inc., Coronado, Calif. “However, don’t expect to receive more than a few thousand dollars unless you have a more extreme case. Those who were financially injured in more than one way can expect the largest payments.”

Examples of financial injury can include fees charged or mortgage payments that were inaccurately calculated, processed or applied; a foreclosure action that occurred despite bankruptcy protection; a higher mortgage balance at the time of the foreclosure action than was actually owed; and a foreclosure sale that occurred despite complying with everything the modification agreement required.

“Consider this program to be a class-action suit against the nation’s largest mortgage lenders and services,” Kavanewsky says. “The voices of those who have been wrongfully foreclosed upon have been heard. This program provides these folks the best chance of receiving any sort of refund without having to battle in court one-on-one with some of the country’s largest corporations.”