Foreclosure in 2009 or 2010? New independent review for possible compensation available until 12/31/12

houseIf you participated in a foreclosure in 2009 or 2010, you have until December 31 to request a free review and could receive compensation if errors are found.

Ordered by federal bank regulators—the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System—independent consultants will review foreclosure actions to determine whether borrowers suffered financial injury as a result of foreclosure errors. Where financial injury is found, regulators have directed mortgage servicers provide compensation or other remedy. Regulators are overseeing the reviews and will approve plans to compensate affected homeowners.

Can I Request a Review?

To be eligible, the mortgage must have been in the process of foreclosure in 2009 or 2010, involve your primary residence, and serviced by one of the companies listed at You do not need to have lost your home to participate.

What Kind of Errors Result in Financial Injury?

Some examples include:

  • The mortgage balance amount at the time of the foreclosure action was more than you actually owed.
  • You were doing everything the modification agreement required, but the foreclosure sale still happened.
  • The foreclosure action occurred while you were protected by bankruptcy.
  • You requested assistance/modification, submitted complete documents on time, and were waiting for a decision when the foreclosure sale occurred.
  • Fees charged or mortgage payments were inaccurately calculated, processed, or applied.
  • The foreclosure action occurred on a mortgage that was obtained before active duty military service began and while on active duty, or within 9 months after the active duty ended and the servicemember did not waive his/her rights under the Servicemembers Civil Relief Act.

What Could I Get?

In June, regulators published a guide that contains information about possible compensation for errors found during an independent review.

The review is free and if an error is found, homeowners may be eligible for compensation or other remedy such as refunded fees, stopping of a foreclosure, or payments up to $125,000 plus equity.

Any payments made to you if errors in your foreclosure are found may be required to be reported to the IRS and may have tax implications. Consult a tax advisor to discuss those implications.

Homeowners now have until December 31, 2012 to request an independent foreclosure review.

How Can I Participate?

Homeowners can check eligibility and request a review at  or call (888) 952-9105 to request a Request for Review Form and return it by mail.

How Long Do Reviews Take?

More than 239,000 people have requested a review. Reviews are detailed and will take several months to complete. Not all foreclosures involve errors and not all errors lead to compensation. You give up nothing by requesting a review and do not waive any rights to additional action by accepting compensation through this program. Remember, reviews are free and conducted by a neutral third party.

To check eligibility or to request a review, go to: 

For information from the Office of the Comptroller of the Currency, a bureau of the U.S. Department of the Treasury, go to:

For information from the Board of Governors of the Federal Reserve System, go to:

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