Regulators are granting a third extension to a program that allows home owners who were foreclosed upon to request a free, third-party review of their case. Home owners now have until Dec. 31 to request a review.
Originally, the Federal Reserve and the Office of the Comptroller of the Currency had set a deadline of April 30, and then have continued to push that date back to allow more home owners time to take advantage and spread the word. As of May 31, only about 193,000 borrowers had requested a review, according to the OCC.
The extension “provides more time to increase awareness about the Independent Foreclosure Review and how eligible borrowers may request a review and to encourage the broadest participation possible,” the regulators said in a statement.
Home owners who had a foreclosure filed against them between 2009 and 2010 are eligible to request a review of their case. If errors are uncovered—such as a home owner not getting a fair chance at a loan modification prior to a foreclosure or an error in processing the paperwork—home owners may be compensated. Compensation may include anything from home owners receiving a lump-sum payment (anywhere from $500 to $125,000, plus equity) to suspension or recession of their foreclosure to a loan modification. They also may receive a correction to their credit report and deficiency amounts on record.
For more information, visit independentforeclosurereview.com.