Foreclosed owners get review extension until December 31

Regulators are granting a third extension to a program that allows homeowners who were foreclosed upon to request a free, third-party review of their case.

Homeowners now have until December 31 to request a review.
Originally, the Federal Reserve and the Office of the Comptroller of the Currency had set a deadline of April 30, and then have continued to push that date back to allow more owners time to take advantage and spread the word. As of May 31, only about 193,000 borrowers had requested a review, according to the OCC.

The extension “provides more time to increase awareness about the Independent Foreclosure Review and how eligible borrowers may request a review and to encourage the broadest participation possible,” the regulators said in a statement.

Homeowners who had a foreclosure filed against them between 2009 and 2010 are eligible to request a review of their case. If errors are uncovered-such as a homeowner not getting a fair chance at a loan modification prior to a foreclosure or an error in processing the paperwork-homeowners may be compensated.

Compensation may include anything from home owners receiving a lump-sum payment (anywhere from $500 to $125,000, plus equity) to suspension or recession of their foreclosure to a loan modification. They also may receive a correction to their credit report and deficiency amounts on record.