Michigan Attorney General Bill Schuette announced that claim forms are being mailed to approximately 148,000 Michigan borrowers who lost their home to foreclosure between Jan. 1, 2008 and Dec. 31, 2011. Qualified Michigan borrowers may be eligible for a cash payment under the $25 billion national mortgage settlement.
"Many Michigan residents who were damaged by the foreclosure crisis will now be eligible for assistance," Schuette said. "These funds will help victims of mortgage servicers' abuses rebuild their lives, but it does not affect victims' rights to pursue their own lawsuits, if they so choose.
"My office's criminal investigation of mortgage processors connected to robo-signing allegations also remains ongoing at this time."
Eligible Michigan borrowers had mortgages serviced by Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo, the nation's five largest mortgage servicers that agreed to the settlement with the federal government and attorneys general for 49 states and Washington, D.C.
Claim Forms Mailed to Borrowers
Last week, the national mortgage settlement administrator mailed notification postcards to eligible borrowers. In addition, Michigan borrowers will receive packets containing the following documents: letter from Schuette, claim form, instructions to complete the form and answers to frequently-asked questions. These packets are being mailed through Oct. 12.
Schuette urged eligible Michigan borrowers to complete their claim forms and return them as soon as possible in the envelope provided. Borrowers also have the option of filing claims online at www.nationalmortgagesettlement.com. The deadline for all claims is Jan. 18, 2013. Schuette noted that payment checks are expected to be mailed in mid-2013.
Schuette encourages borrowers with questions about completing the claim form to contact the settlement administrator, toll free, at (866) 430-8358 or by sending an email to email@example.com. The toll-free hotline is staffed from 8 a.m. to 6 p.m. ET. For more information, click here.