CHARLESTON - On Wednesday, during a press conference held in Charleston, West Virginia Attorney General Darrell McGraw announced that claim forms are in the process of being mailed to approximately 5,222 West Virginia borrowers who lost their homes to foreclosure between Jan. 1, 2008 and Dec. 31, 2011, who may be eligible for payment under the $25 billion national mortgage foreclosure statement.
These numbers include approximately 350 households in Mingo, Logan, Boone, Wyoming and McDowell Counties.
Eligible borrowers had mortgages serviced by Ally/GMAC, Bank of America, Citi, JP Morgan, Chase and Wells Fargo, the nation’s five largest mortgage servicers that agreed to the settlement with the federal government and attorney general’s representing 49 states and the District of Columbia.
The settlement, which took effect in April of this year, earmarked approximately $3.6 million in payments for borrowers statewide who lost their homes to foreclosure during that time period and had their loan serviced by one of the companies that settled. The exact payment per household will depend on the number of borrowers who decide to participate.
“This payment is intended as partial compensation for the mortgage servicers’ illegal conduct and servicing abuse,” stated McGraw. “By participating, borrowers do not give up and of their legal rights. They’re free to participate in this settlement and also pursue other legal remedies such as filing a lawsuit or participating in a class action settlement if they choose to do so.”
The forms that are being mailed to qualified borrowers must be completed and returned no later than Jan. 18, 2013. Last week, Rust Consulting, the national settlement administrator, mailed notification postcards to the states eligible borrowers. In West Virginia, packets containing a letter from Attorney General McGraw, along with a claim form, instructions and answers to frequently asked questions are being mailed to eligible borrowers beginning on Wednesday and continuing through Oct. 12.
McGraw urges all West Virginia borrowers who are eligible to complete their claim forms and return them as soon as possible in the envelope provided, or file them online at www.nationalmortgagesettlement.com. Payment is expected to be mailed in June or July of next year.
If you require assistance completing the form, you may contact the settlement administrator, at 1-866-430-8358. Someone is available to take your call Monday through Friday, between the hours of 8 a.m. and 8 p.m., EST.
Borrowers who believe they may qualify for payment, but did not receive a notice because they have moved from their original address, should contact the service administrator at the number listed above to provide their present location and correct mailing address.