Independent Foreclosure Review Deadline is December 31, 2012. Learn How to Apply Here.

By Sean Coffey, Program Manager at Foreclosure Help.

There is just 31 days left to apply for the Independent Foreclosure Review.
The Independent Foreclosure Review was included in a settlement between federal regulators and 14 banks for the way they processed modifications and foreclosures in 2009 and 2010.

Eligibility: If a homeowner was in any sort of “foreclosure action” between January 1, 2009 and December 31, 2010, and they feel it was improperly processed, then they may want to learn more and consider applying.  A foreclosure action does not necessarily mean the house was sold, the homeowner could still be in the home.

A foreclosure action includes:

• the home being sold through a foreclosure judgment,
• the loan went into the foreclosure process but the homeowner brought the mortgage current or entered a payment or modification plan,
• the home was in foreclosure and the home was sold, the borrower participated in short-sale, or gave the home back to the bank via a deed-in-lieu, or
• the mortgage was in foreclosure, the mortgage is still behind, but a sale has not yet taken place.

It also has to be the primary residence, and it only applies to the 14 banks/servicers included in the agreement.

The 14 banks and servicers are:

• America’s Servicing Co.
• Aurora Loan Services
• BAC Home Loans Servicing
• Bank of America
• Beneficial
• Chase
• Citibank
• CitiFinancial
• CitiMortgage
• Countrywide
• EMC
• EverBank/EverHome Mortgage Company
• Financial Freedom
• GMAC Mortgage
• HFC
• HSBC
• IndyMac Mortgage Services
• MetLife Bank
• National City Mortgage
• PNC Mortgage
• Sovereign Bank
• SunTrust Mortgage
• U.S. Bank
• Wachovia
• Washington Mutual
• Wells Fargo
• Wilshire Credit Corporation

There is more information about eligibility on the Independent Foreclosure Review website.

SPANISH: There is also information in Spanish about the Independent Foreclosure review available here: ¿Qué es la Revisión Independiente de la Ejecución Hipotecaria?   También: Guia para completer el formulario

If you know of any homeowners who are potentially eligible, please encourage them to contact us with questions.   If a review finds their modification or foreclosure was improperly processed, depending on the situation, the homeowner could receive financial payments, ranging from $1,000 to up to $125,000 plus equity that was lost in the foreclosure.  For more information on the financial penalties, view this chart: Financial Penalties. Thus far, the number of eligible people who have applied for a modification is far below the projections (See this June GAO report for more information), so it is important to get the word out before the deadline passes in December.

The Independent Foreclosure Review is different than the foreclosure refund program, which is part of the Attorneys General Settlement.  The deadline to apply for the foreclosure refund in California is January 18, 2013.  For more information about the foreclosure refund, visit: “California Foreclosure Refund Program, Part of the Attorney General Settlement”

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit our website: www.foreclosurehelpscc.org.  Our HUD-approved counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.