About 4 million homeowners who may have been improperly foreclosed upon in 2009 and 2010 are getting an opportunity to have their cases reviewed. Whether they will be reimbursed is up to the same lenders who are accused of moving too swiftly to seize their homes.
The Office of the Comptroller of the Currency said Monday that mortgage services will begin sending out letters this month that ask borrowers if they want their case reviewed.
The nation’s 14 largest mortgage servicers â€” including Citibank, Bank of America, JPMorgan Chase and Wells Fargo â€” were ordered to offer to review cases after the government found that some rushed the foreclosure process without carefully reviewing documents. Source: 4 million foreclosures subject to review
FOUR MILLION! That’s a large number. Piecing together stats for 2008 – 2010 via Google search, I was able to come up with roughly 10,000,000 foreclosure filings over those three years (Sources: 2008, 2009, and 2010). So, 4,000,000 reviews implies roughly 40% of all foreclosure filings. That’s a lot! How much is this going to cost? Who’s going to pay?