About 10,000 Maryland residents should keep an eye on their mailboxes during the two weeks beginning June 10. While the reason is a little less dramatic than the Publishers Clearing House Sweepstakes, it is not a gamble: According to Attorney General Douglas F. Gansler, the National Mortgage Settlement will mail payment checks to borrowers who took advantage of the agreement.
The National Mortgage Settlement is the agreement reached between 49 state attorneys general and major lenders (and their mortgage servicing arms) in early 2012. The attorneys general had accused the lenders of abusive practices in servicing home loans and foreclosures. In all, the lenders agreed to pay about $25 billion to distressed borrowers, the states and the federal government.
For the borrowers who lost their homes, the checks could be small comfort. Officials hope that the money will help borrowers get back on their feet. Officials also made sure that the settlement did not prohibit individual borrowers from pursuing other types of relief from the banks, including individual lawsuits.
When the terms of the agreement were announced, borrowers were stunned to learn that the average check would be about $840. In his statement, Gansler revealed that the average payment would be $1,480 — far short of full restitution, but much more than the original estimate.
Again, not every borrower who lost a home to foreclosure will be receiving a check. To qualify, borrowers must have had their mortgage serviced by one of the five lenders, must have gone through foreclosure between Jan. 1, 2008, and Dec. 31, 2011, and, importantly, must have submitted a proper claim.
Source: The Baltimore Sun, “Checks to be sent next week to 10,000 mortgage borrowers in Maryland,” Steve Kilar, June 5, 2013