The National Mortgage Settlement was proclaimed in the year 2012. It arose in the response to the mortgage and housing crisis. Under the Settlement terms, five major mortgage lender companies agreed to pay $25 billion in order to prevent disputes involving foreclosure and mortgage issues.
The Settlement is also referred to as the "$25 Billion National Mortgage Settlement". In order to qualify for dispersions, the claimant must meet many qualifications. The qualifications are complex and involve many factors including:
- Number of payments on the mortgage
- Date of any foreclosure proceedings (generally must be between January 1, 2008 and December 31, 2011)
- Calculations involving unpaid balance
- Any errors made by a mortgage processor
A real estate or tax attorney is generally required when applying for the Settlement.
Naturally, the Settlement has led to a number of mortgage settlement scams and disputes. Some disputes and scams include:
- Falsification of information on an eligibility application
- Use of fake applications to obtain personal ID (similar to phishing scams)
- Illegal fees
- Use of fake credentials/impersonating a professional
- Various forms of tax fraud
Thus, you should never divulge any personal information to persons or parties that you are suspicious of. You should always check credentials when dealing with agencies that claim to provide assistance or services in relation to the Mortgage Settlement. Violations of real estate laws can lead to a lawsuit and may result in criminal charges as well for the violating party.
The National Mortgage Settlement has resulted in an area of the market that is filled with potentially damaging scams and disputes. You may wish to hire a qualified mortgage lawyer if you feel that you have been affected by fraud. Your attorney can help examine your case and can represent you in court if you need to file a claim for damages.