Financial institutions that offer mortgages must disclose all mortgage terms and must adhere to timely and proper paperwork processing standards or risk paying restitution at a later date. Mississippi residents should know that even if they have lost their homes to foreclosure, they might be due compensation in the case that their mortgage lenders did not follow proper procedures or engaged in foreclosure fraud.
A 74-year-old woman who had raised seven children was looking forward to enjoying her golden years in the home she and her family had shared. After her husband passed away in 2007, Bank of America allegedly contacted her to offer her a new mortgage with a home equity line of credit that exceeded $100,000.
According to the homeowner, she did not know that her monthly mortgage payments would skyrocket $1,200 per month. Although she tried to work out a loan modification with the bank, she eventually lost her home to foreclosure.
This homeowner and others like her across the country may be able to take advantage of programs like the federal Independent Foreclosure Review program. Fourteen of the country’s largest banks have been ordered by the government to participate by allowing a review of questionable foreclosures. If a review concludes that a foreclosure was instigated due to paperwork that was improperly processed or if the lender misrepresented the mortgage terms, foreclosed homeowners may be able to collect up to $125,000.
Homeowners who are facing foreclosure must know their rights and the lenders’ responsibilities to be given the best chance of coming up with a loan modification or other resolution. Those who have already lost their homes to foreclosure due to bank negligence or misrepresentation may also be able to collect restitution.