72,000 Michigan borrowers set to receive mortgage settlement checks

72,000 Michigan borrowers set to receive mortgage settlement checks

LANSING — About 72,000 Michigan borrowers are set to receive more than $107 million from a massive national mortgage foreclosure settlement.

Restitution checks for about $1,480 each will go out this week to people impacted by mortgage servicing abuses related to the national foreclosure crisis, according to Michigan Attorney General Bill Schuette.

“These funds will help victims of mortgage servicers’ abuses rebuild their lives, and we will work to ensure devastating practices like these never happens again through enforcing new mortgage servicing standards,” Schuette said in a statement.

Michigan, 48 other states and the federal government reached a $25 billion settlement agreement in February 2012 with the country’s five biggest mortgage servicers over allegations of violations and errors in the foreclosure process. About 962,280 claim payments will be sent out nationally starting this week.

The payments are arriving after many people already lost their homes. Other state and federal programs are being used to help current homeowners keep their homes.

Overall, Michigan residents are expected to receive about $780 million in benefits from the settlement, including a $97 million payment made directly to the state. The state’s $97 million will be used for eight programs, including foreclosure counseling, blight elimination, refinancing grants and a veterans’ assistance fund.

The settlement payments are going to borrowers who had a loan serviced by one of the five participating mortgage servicers, lost their home to foreclosure between January 1, 2008 and December 31, 2011, and submitted a valid claim form. The servicers are Ally (formerly GMAC), Bank of America, Citi, JPMorgan Chase and Wells Fargo.

Borrowers with questions about the payment can call settlement administrator Rust Consulting at 1-866-430-8358 or consult the Attorney General’s website.

By Melissa Anders | manders@mlive.com

Email Melissa Anders at manders@mlive.com.

Written by

No Comments Yet.

Leave a reply

You must be logged in to post a comment.