Are you eligible for $8.5 billion foreclosure settlement?

5:45 PM, Jan 8, 2013   |    comments
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There are thousands of homeowners in Northeast Ohio who could have money coming to them.

It was announced Monday that 10 major banks agreed to pay $8.5 billion to homeowners wrongfully foreclosed upon.

But how do you know you will actually get your money?

The news of a settlement came as a shock to ESOP Executive Director Mark Seifert, not because the banks admitted fault.

"This doesn't begin to cover the amount of damage this industry has done and continues to do to people," says Seifert.

Nonetheless, it's a little compensation for so many of our neighbors who went through a nightmare.

You're eligible if your home was in foreclosure in 2009 or 2010 and if your loan was handled by one of the 10 banks.

Those banks include Bank of America, Citigroup, Wells Fargo, JPMorgan Chase, MetLife Bank, PNC, Sovereign, Sun Trust, U.S. Bank and Aurora. Others may join as an amendment to the settlement.

So, what happens now? Regulators are reviewing loans to see which ones qualify. Homeowners with money coming to them will get a letter in the mail by the end of March.

Seifert says he's skeptical the money will make it into the right hands.

"Send them a check! Just send them the check. It's not rocket science, but what they're trying to do is find a way to not make these payments," says Seifert.

There are a few problems ESOP sees with the current plan.

First of all, if someone was foreclosed upon, they're not at that address anymore. So, it will be difficult to find the deserving homeowner.

If the homeowner is still at the home, they might not trust a legal letter from a lender that's foreclosed upon them.

WKYC-TV

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