Attn Borrowers: 2009 Called, Your Checks Are Ready
We’ve been talking a lot about the velocity of the housing recovery, but we can’t forget about those borrowers who were completely underwater back in 2009. The Federal Reserve announced on Monday that Goldman Sachs and Morgan Stanley borrowers covered under the foreclosure review settlement will receive their checks sometime next week. The checks will be mailed out this Friday, May 3.
This batch of payments includes more than 220,000 borrowers you had mortgages in any stage of the foreclosure process between 2009 and 2010 under Litton Loan Servicing LP or Saxon Mortgage Services Inc. The checks to be paid to borrowers are valued at $247 million.
The first round of checks were mailed on April 12, the third wave released on April 26 and since then, 1.2 million checks have been cashed or deposited totaling a staggering $1.2 billion. Payments to borrowers range from $300 to more than $125,000. These payments were determined after the borrowers were categorized based on the stage of the foreclosure process and the type of servicer error.
This new agreement mandates servicers to pay $3.6 billion in cash payments to 4.2 million borrowers.
The Fed states that payment amounts for Goldman Sachs and Morgan Stanley borrowers may differ from borrowers in the same category because Goldman Sachs and Morgan Stanley borrowers were not able to request a review of their foreclosure file.
Other servicers were part of consent orders issued in 2011 that required an Independent Foreclosure Review at the request of the borrower. The 11 other servicers include:
- Bank of America
- JPMorgan Chase
- MetLife Bank
- 10. U.S. Bank
- 11. Wells Fargo
The Fed warned of scams and said to beware of anyone asking borrowers to call a different phone number or to pay a fee to receive payment under the agreement.