Dual locks are on the front door of empty house in Homestead, Fla., to prevent entry into the foreclosed home. As a result of illegal foreclosure practices on the part of the country's five largest servicers, state attorney generals reached a settlement to provide payments to affected Americans in 49 states. (J Pat Carter / The Associated Press)
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on June 25, 2013 at 3:13 PM, updated June 25, 2013 at 3:17 PM
Nearly 6,000 Louisianians could open their mailboxes Tuesday (June 25) and find a check for roughly $1,500, according to Attorney General James "Buddy" Caldwell. The checks are the result of a settlement between Caldwell and the country's five largest mortgage servicers for years of illegal foreclosure practices.
The five servicers -- Ally (formerly GMAC), Bank of America, Citi, JPMorgan Chase and Wells Fargo -- were found to have repeatedly engaged in improper foreclosures, such as signing often-inaccurate foreclosure documents without a notary public present. The settlement, reached in February 2012, is providing $1.5 million in payments to Americans affected by such foreclosures in 49 states.
"These payments will help offset some expenses the borrowers have experienced as a result of abusive foreclose practices by the five national mortgage servicers," Sanettria "Sam" Pleasant, director of the state Attorney General's Public Protection Division, said in an email statement Tuesday.
The checks will be distributed by the National Mortgage Settlement Administrator and will begin arriving Tuesday, the statement said. They will be distributed to the 5,953 individual Louisiana borrowers who submitted a valid payment claim for foreclosures made between Jan. 1, 2008 and Dec. 31, 2011.
The settlement represents the largest of its kind in U.S. history. Nationwide, it will provide $25 billion in payments to individual borrowers, signing states as well as the federal government. The payments to states will go to help finance consumer and foreclosure protection efforts.
The payments received by individual borrowers do not preclude them from seeking other means of restitution, the attorney general's statement said.
Borrowers with questions about their claim or payment should call the National Mortgage Settlement Administrator at 1.866.430.8358.
The five servicers -- Ally (formerly GMAC), Bank of America, Citi, JPMorgan Chase and Wells Fargo -- were found to have repeatedly engaged in improper foreclosures, such as signing often-inaccurate foreclosure documents without a notary public present. The settlement, reached in February 2012, is providing $1.5 million in payments to Americans affected by such foreclosures in 49 states.
"These payments will help offset some expenses the borrowers have experienced as a result of abusive foreclose practices by the five national mortgage servicers," Sanettria "Sam" Pleasant, director of the state Attorney General's Public Protection Division, said in an email statement Tuesday.
The checks will be distributed by the National Mortgage Settlement Administrator and will begin arriving Tuesday, the statement said. They will be distributed to the 5,953 individual Louisiana borrowers who submitted a valid payment claim for foreclosures made between Jan. 1, 2008 and Dec. 31, 2011.
The settlement represents the largest of its kind in U.S. history. Nationwide, it will provide $25 billion in payments to individual borrowers, signing states as well as the federal government. The payments to states will go to help finance consumer and foreclosure protection efforts.
The payments received by individual borrowers do not preclude them from seeking other means of restitution, the attorney general's statement said.
Borrowers with questions about their claim or payment should call the National Mortgage Settlement Administrator at 1.866.430.8358.
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