Clock ticking to apply to foreclosure fundby Annie Baxter, Minnesota Public Radio
ST. PAUL, Minn. — Victims of wrongful foreclosures have about one month to apply for money from a national mortgage settlement.
Earlier this year, the attorneys general of 49 states reached the settlement with five major banks. It provides reparations for wrongful foreclosures because of mishandling by a bank.
Borrowers who lost their home to foreclosure between Jan. 1, 2008, and Dec. 31, 2011, may be eligible for claims tied to the settlement.
Minnesota Attorney General Lori Swanson said eligible borrowers should have been contacted by Wells Fargo, Bank of America, Citi, Chase or GMAC/Ally. But some borrowers might have fallen through the cracks.
"One of the problems is there's a certain number of people who aren't in that home anymore," Swanson said, "and so it's important that the word be gotten out to them as well."
Swanson said the amount individuals receive will nt be clear until all claims are in.
"The ultimate check that individual consumers will get is going to depend on how many borrowers across the country end up filing claims against the claim fund," she said. "It's not like excess money goes back to the banks."
Swanson said people should be wary of scams that require a fee to submit a claim. No fees are necessary.
Roughly $1.5 billion in settlement money will be distributed among eligible borrowers. Swanson said borrowers can contact her office with questions.
The deadline for submitting a claim form is Jan. 18, 2013. More information on eligibility is available here.
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