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Most Homeowners Compensated for Bank Foreclosure Misdeeds will Receive just $300

By Noel Brinkerhoff | AllGov | April 12, 2013

Most homeowners wronged during the foreclosure fiasco will receive only a few hundred dollars in compensation from a settlement reached between the federal government and banks.

About 2.4 million borrowers of the almost 4 million eligible homeowners will receive $300 after lenders gave out misinformation, lost documents and committed other misdeeds.

Two years ago, the Independent Foreclosure Review proclaimed homeowners who suffered “financial injury” could get as much as $125,000.

It now turns out only 1,135 borrowers will see this amount. This small group mostly includes members of the U.S. military who had their homes taken away from them, as well as 53 non-military homeowners who endured foreclosure even though they didn’t default on their loans.

April 13, 2013 Posted by | Civil Liberties, Corruption | , , | Leave a comment