Epic Fail: Foreclosure Settlement Agreement Compensation

by on Foreclosure Crisis

House and Red Foreclosure Stamp

Over the last few years, foreclosure settlement agreements have been seemingly never-ending. One part of the foreclosure settlement agreement involved the use of an Independent Foreclosure Review Process in an effort to help victims of wrongful lender actions to receive compensation for their sufferings. However, due to a variety of issues including poor oversight and lender immorality, this process was a fail from the start.

As a result of this failed process, a new agreement was reached that required lenders to pay every person who was foreclosed upon during a given timespan. Finally, those who have been wronged would receive much-deserved compensation – or so we thought. It was announced that by July 2013, each of the victims would receive compensation based on the foreclosure settlement agreement decision to remove the independent foreclosure review process.

How, exactly, are victims taking this news? Initially there was skepticism and a belief that lenders were getting away with a simple slap on the wrist; however, there was relief that they were finally going to receive some compensation for their suffering. That was until they got the checks in the mail…

Victims of Lender Unethical Actions are Furious

As many of these victims started to receive their checks in the mail, most found themselves staring at a check for $300 – a ridiculously low compensation for the damages that these lenders caused to some of these family’s finances. As a result, most believe that the compensation is a joke and simply adds salt to the fresh wound.

What went wrong? Yet again banks were left to their own devices and were not given the proper oversight.

These lenders agreed to provide compensation for a grand total of $3.6 billion. However, they would divide the foreclosures up into categories and assign a compensation number to each of these categories. The mystery lies in exactly how these lenders chose which individuals went into which category and if the process was fair and/or accurate.

Many of the homeowners receiving $300 checks felt they were shafted and have been hanging on for up to three years now awaiting some relief from the problems that they believe are the fault of lenders (and few people argue the contrary).

Unfortunately, these individuals are the ones left suffering the consequences of the unethical lender actions – including but definitely not limited to wrongful foreclosures – and have yet again got their hopes up just to see the shortcomings and lack of follow-through on the foreclosure settlement agreements.

In conclusion, despite the effort to “appease” those who faced foreclosure throughout 2009 and 2010, the recent attempts of compensation prove to be more of an insult than much-needed relief.