LITTLE ROCK – January 14, 2012 – (RealEstateRama) — Attorney General Dustin McDaniel today reminded Arkansans who are eligible for one-time payments from the National Mortgage Settlement that Friday, Jan. 18, is the deadline to file claims to receive those payments.
Arkansans who lost their homes due to foreclosure between Jan. 1, 2008, and Dec. 31, 2011, and whose loans were serviced by one of the five lenders involved in the settlement are eligible for the cash payments. Eligible borrowers should have received a claim form from the Settlement Administrator. The claim form must be submitted by Friday.
Arkansans who believe they are eligible for a cash payment but did not receive a claim form should contact the Settlement Administrator at (866) 430-8358 or visit www.nationalmortgagesettlement.com. Additional information on the settlement is on the Attorney General’s website, www.GotYourBackArkansas.org.
About $1.5 billion of the landmark $25 billion settlement was set aside for payments to borrowers who lost their homes to foreclosure. Mortgage servicers participating in the settlement were Ally/GMAC, Bank of America, Citi, JP Morgan Chase and Wells Fargo.
The settlement, announced in February 2012, was a result of a 16-month investigation by multiple federal agencies and state attorneys general into illegal mortgage servicing practices such as “robo-signing,” or approving foreclosure documents without reviewing them.
The agreement provided financial relief to Arkansas consumers at risk of losing their homes to foreclosure and to those who owed more than their property is worth. It also required the banks to implement strict new mortgage servicing standards to prevent future foreclosure fraud.