In 2012, the Federal Government reached a settlement agreement with 49 states and the nation’s five largest mortgage servicers, Ally Financial, Bank of America, Citibank, JP Morgan Chase, and Wells Fargo. These five banks agreed to pay $50 billion in combined gross relief in order to settle or avoid further disputes relating to mortgage services and foreclosures.
The National Mortgage Settlement provides consumer financial protection in that the settlement is allotted to homeowners who were wrongly foreclosed upon. The settlement is also provided to many homeowners who lost their homes between January 1, 2008 and December 31, 2011 and who took out loans by one of the five participating mortgage servicers. Eligibility for settlement money varies depending on the facts of your case, but people who believe they are eligible should directly contact their mortgage servicer directly.
Mortgage settlement scams are scams which are designed to prey on consumers who either are or believe they are eligible for the National Mortgage Settlement. Scammers’ goal is to obtain personal information (like your social security number), bank account information, or charge you a fee to help determine whether you qualify for relief.
Criminals who commit fraud will do just about anything to get their hands on money, and with the passage of the settlement back in 2012, mortgage scams surged. Below is a non-exhaustive list of common types of mortgage settlement scams.
If you believe that you have been a victim of a mortgage settlement scam, you may wish to contact a real estate lawyer for advice or representation in court. You may also wish to contact a lawyer for advice regarding your eligibility for a settlement payout. A knowledgeable attorney in your area can provide you with much-needed assistance regarding mortgages and foreclosures.
Last Modified: 06-06-2018 11:49 PM PDTLaw Library Disclaimer
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