Eligible Hoosiers May Receive Mortgage Settlement Money

By Scott Sarvay

Eligible Hoosiers May Receive Mortgage Settlement Money

September 25, 2012 Updated Sep 25, 2012 at 12:37 PM EDT

Indiana (Indiana’s NewsCenter) – The Indiana Attorney General Greg Zoeller announced Tuesday that eligible borrowers who lost their homes to foreclosure will soon receive claim forms to submit for payment under the national mortgage settlement.

Eligible homeowners must have had loans serviced by Ally/GMAC, Bank of America, Citi Bank, JP Morgan Chase or Wells Fargo and lost their homes either through sheriff sale, short sale or deed in lieu of foreclosure. Depending upon the number of eligible participants, the amount payable to these borrowers will be about $840 per eligible household.

In February, Indiana was one of 49 states to join in the federal government's settlement with the nation’s five major mortgage lending banks and servicing institutions for allegations of robosigning. As part of the settlement, Indiana’s homeowners who were foreclosed upon and experienced a servicer error between Jan. 1, 2008 and Dec. 31, 2011 will receive payment.

Consumers who believe they are eligible but do not receive a postcard or claim packet can call the settlement administrator’s hotline toll-free at 1-866-430-8358. The hotline is staffed Monday through Friday from 7 a.m. to 7 p.m. Central. Borrowers who have questions or need help filing their claim can also contact the settlement administrator at the toll-free number or send questions by email to administrator@nationalmortgagesettlement.com.

Eligible borrowers may get a payment from this settlement even if they participate in another foreclosure claims process. However, any payment received may reduce payments borrowers may be eligible to receive in any other foreclosure claim process or legal proceeding.

Zoeller warns consumers that scammers may try to contact them and offer assistance in obtaining payment from the settlement for a fee. There is no cost to eligible borrowers to participate in this settlement and consumers should not provide any personal or financial information to the solicitor. If you think you might be a victim of a scam please file a complaint with the Attorney General’s Office by visiting www.IndianaConsumer.com or by calling 1-800-382-5516.

For more information about the settlement or claims process, < a href="http://www.nationalmortgagesettlement.com" target="_blank">Click Here.

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