Second Chance for Foreclosed Homes

Posted on Jul 11, 2011

Over 2 million homeowners that were in the process of foreclosure or actually foreclosed upon during 2009 or 2010 can receive a second chance for their case to be reviewed. Homeowners that may be eligible will receive a letter from their lender explaining their rights.

In an effort to find homeowners that may have been foreclosed on improperly, the reviews are part of the investigation in the fall of 2010 that revealed that foreclosure practices by some banks were not done properly. Mortgage servicers will be hiring independent auditors to review the homeowner’s cases to determine if they should receive financial compensation if the foreclosures were indeed not properly conducted.

Borrowers that were denied loan modifications when they were eligible will also be re-evaluated during this process. Banks have until Wednesday to submit their plans for revamping foreclosure practices to the Office of the Comptroller of the Currency (OCC).