Kentuckians Can Benefit from National Foreclosure Settlement
The state Attorney General's Office says Friday is the last day for Kentuckians to file a claim to receive a payment under the national mortgage settlement. Thousands of borrowers who lost their homes between 2008 and 2011 may be eligible to receive a payment.
The nation's five largest mortgage servicers agreed to the settlement with the federal government and 49 state attorneys general last year.
"Basically this settlement settles claims by the attorneys general that during the housing crisis and foreclosure crisis in the United States, these banks had allegedly engaged in fraudulent behavior which included robo signing documents that it filed with the court," said Allison Martin, a spokeswman for the Kentucky Attorney General's Office.
The companies involved in the $25 billion settlement are Ally\GMAC, Bank of America, Citi, JP Morgan Chase, and Wells Fargo. While Friday is the deadline to apply for a cash payment, another portion of the settlement remains open, and that's for those in danger of foreclosure or who owe more money than their home is worth. Options for them may include loan modifications or refinancing options. The Attorney General's Office says nearly a thousand Kentuckians have already received some relief.