Few Borrowers in Foreclosure Apply for Free Review

Only a tiny percentage of the 4.3 million homeowners facing foreclosure have applied for a free foreclosure  review to check for errors, despite the fact that they could be eligible for up to $100,000 if errors are found.

The review process was put into effect as a result of the “robo-signing” scandal, where several banks admitted to mishandling some foreclosure documents, resulting in some homeowners wrongfully losing their homes.

In the wake of the scandal, federal bank regulators required 14 mortgage companies to establish the Independent Foreclosure Review process.

The review costs homeowners nothing, but at last count, only 165,000 people — fewer than 4 percent of those eligible — have applied.

The original April 30 deadline has since been extended to July 31.

Read the entire story by Yuki Noguchi at NPR.

Find out if you are eligible for an independent foreclosure review.

If you are facing foreclosure and would like assistance with reviewing your options, contact a home ownership and loss mitigation counseling agency for free counseling on the options available to you to prevent or mitigate the foreclosure.

If it is determined that you will need the assistance of an attorney, the Lawyer Referral Service of the NH Bar Association can help with a referral to a competent attorney who specifically handles foreclosure matters.  Call 603-229-0002 or request an online referral.