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August 22, 2014

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Applications available for foreclosure settlement payments

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Leila Navidi

Nevada Attorney General Catherine Cortez Masto speaks to an editorial board at the Las Vegas Sun offices in Henderson on Monday, September 24, 2012.

Editorial Board - Catherine Cortez Masto and Shaun Donovan

U.S. Housing and Urban Development Secretary Shaun Donovan and Nevada Attorney General Catherine Cortez Masto speak to an editorial board at the Las Vegas Sun offices in Henderson on Monday, September 24, 2012. Launch slideshow »

Nearly 67,000 Nevadans who lost their homes to foreclosures will be eligible for checks of as much as $2,000 under a settlement agreement with the nation’s five largest banks, Attorney General Catherine Cortez Masto said Monday.

This week, Cortez Masto’s office began mailing information packets to people who lost their homes to foreclosure between Jan. 1, 2008, and Dec. 31, 2011. The packets will be mailed through Oct. 12. To be eligible for the payment, homeowners must return the forms by Jan. 18.

Cortez Masto, at a Las Vegas Sun editorial board meeting Monday with U.S. Housing and Urban Development Secretary Shaun Donovan, cautioned Nevadans to beware of people looking to charge them to apply for the funds.

“It’s free,” Cortez Masto said. “I’m concerned about scammers.”

She advised homeowners not to hire anyone to help them with the settlement process.

Payment checks are expected to be mailed in mid-2013.

The federal government and 49 state attorneys general, including Nevada's, entered into the settlement agreement with the nation’s five largest banks this spring. Those banks are Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo.

The settlement earmarked about $1.5 billion in payments for about 1.8 million borrowers nationwide whose loans were serviced by one of the banks. The exact size of the payments, which previously were estimated between $1,500 and $2,000, will be determined by the number of borrowers who participate.

Donovan said investigations found that wrongful fees and other charges on homes averaged between $1,000 and $2,000. Those who believed they were wrongfully foreclosed upon still can pursue other legal claims.

“If you lost your home and shouldn’t have ... you can still get full restitution,” Donovan said.

Forms can be filed online at nationalmortgagesettlement.com.

Borrowers who have questions or need help filing their claim can contact the settlement administrator, toll-free, at 866-430-8358 or send questions by email to [email protected]. The information line is staffed Monday through Friday from 5 a.m. to 5 p.m. PDT.

Borrowers who believe they may qualify for a payment but did not receive a notice because they have moved should contact the settlement administrator directly to provide that information.

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  1. Free money! I hope that steps are taken to make sure it gets into the hands of people that genuinely deserve it.

  2. $2000 for less than 100,000 people? The banks wrecked the economy and forced millions out of there homes. This settlement is a joke! Under other parts of the settlement not one person has gotten a principal reduction. Even though we have never missed a payment in over 7 years (since we moved into this house) we are not eligible for any of the underwater refinancing programs. Further more as soon as we applied under one of the settlement programs B of A sold our loan to a company that does not participate in any of the assistance programs. I called the AG's office and they said they could not help.

    Maybe instead of holding press conferences trumpeting non-existent help, Ms. Masto should do her job!

  3. So the people who lied on their loan applications about their "stated incomes" are now getting rewarded?

  4. Nevada received $87M in settlement funds for "Home Foreclosure Fraud/distressed homeowners" to help victims, however the NV state has already approved $33M for a state run system amounting to a placebic recorded phone message and close to another $1M for advertising the placebic system"

    NV AG Mastos has already earmarked money from the settlement for Nevada Attorney General's Office to add employees and enlarge Nevada government on the backs of the folks the money is recovered to help? See> http://www.lasvegassun.com/news/2012/aug...

    And then there is the 73 NGO positions the foreclosure settlement will fund a total of 73 positions for groups, including the Financial Guidance Center, Community Services of Nevada, Housing for Nevada, Chicanos Por La Causa, Nevada Legal Service and Legal Aid Center of Southern Nevada.

    Out of 67,000 homeowners that lost their homes NV AG Mastos expects to help up to 30,000 distressed homeowners in the first year with payouts up to $2,000 each depending on how many qualify"

    Despite the fuzzy math and $ the state will be spending, undoubtedly the size of Nevada's government will increase while providing little relief to the victims of mortgage fraud/housing crash, then again that's what Nevadan's can expect from this Attorney General who is on record as of 9/20/2012 as supporting years of poisons/chemical's in a children's playground with children's playground fixtures paid for with taxpayers money while obfuscating and refusing to actually review the record and evidence provided? Is not the # 1 job of ALL Nevada Officials-the health and safety ALL Nevada people including distressed homeowners and children as opposed to the safety and well-being of Corporate polluter's and the protection racket employees of NV Mine Safety and Training Section and NV Division of Environment Protection? Seems NV AG Mastos is again failing Nevadan's who are in need/request help"? Paul Rupp B125 Silver Peak NV 89047

  5. Thank you George W. Bush. While you were worried about welfare mothers getting too much and your friends not getting enough, the professional thieves took the entire country for a ride. This is what bin Laden planned and the GOP helped complete: the Sucker Punch.

  6. Only 2k is going to each foreclosed homeowner? That's hardly enough to put down for a deposit and first and lasts month rent for a one bedroom anymore. Get real, 2k isn't a lot of money compared to the hit many homeowners took on their credit, and debt from a foreclosure. Legit home owners that went through foreclosure should get more than that. This is sad.

  7. "Cortez Masto, at a Las Vegas Sun editorial board meeting Monday with U.S. Housing and Urban Development Secretary Shaun Donovan, cautioned Nevadans to beware of people looking to charge them to apply for the funds. "It's free," Cortez Masto said. "I'm concerned about scammers."

    Spoken like two true bureaucrats -- the actual losses were to homeowners, not these bureaucracies tasked with protecting them. They failed miserably, though Masto at least made an effort. Her comments about scammers is troubling, since it's these big institutions -- banks and their regulators -- who are primarily at fault for this mess. As PaulRupp's link shows Masto and our state government expects to use $33 million to herd wronged homeowners right back to the same institutions which defrauded them in the first place, and who likely don't even know who has the right to be paid from the original mortgage notes.

    "Free money!"

    vegasbike -- for families robbed of their homes?? Hardly

    "$2000 for less than 100,000 people?. . . . .Maybe instead of holding press conferences trumpeting non-existent help, Ms. Masto should do her job!"

    smaction -- excellent post, and tells it like it is

    "So the people who lied on their loan applications about their "stated incomes" are now getting rewarded?"

    Noindex -- the only thing worse than your profound ignorance is you repeatedly proving it

    "Nevada received $87M in settlement funds for "Home Foreclosure Fraud/distressed homeowners" to help victims, however the NV state has already approved $33M for a state run system amounting to a placebic recorded phone message and close to another $1M for advertising the placebic system"

    PaulRupp -- best post yet. One error -- Nevada is getting/got $57,368,430 from that settlement. That's from the Consent Judgment's Exhibit B1. Exhibit B2 shows it's all to be used "at the sole discretion of the Attorney General."

    "Only 2k is going to each foreclosed homeowner? That's hardly enough to put down for a deposit and first and lasts month rent for a one bedroom anymore."

    Ashley -- thanx for putting it into perspective. Doing the math, $1.5 billion for 1.8 million wrongfully-foreclosed homeowners works out to far more than $2k each. The rest of course gets gobbled up by the state and its bureaucratic buddies, like Senator Horsford's charity.

    "The regulators got bailed out, the middle class lose their jobs and their houses. All this desire to trust in the government to make sure that big corporations won't hurt them actually is a backfire on them." -- Rep. Ron Paul to Jon Stewart 9/26/11, citing the example of the real estate crash as example of government regulation gone bad

  8. Your home could not be foreclosed on unless you did not pay the mortgage. So this "settlement" rewards those who did not pay their mortgage, probably lived in the home for years free and worse, does nothing for those who did pay their mortgage and those who paid cash and own homes worth far less than they paid. If this sounds fair vote Obama.

  9. "Your home could not be foreclosed on unless you did not pay the mortgage."

    petef -- another totally ignorant post

    "If you're going to take my house away from me, you better own the note." -- Joe Lents (who hasn't made a payment on his $1.5 million mortgage since 2002) in Bloomberg's 2/22/08 "Banks Lose to Deadbeat Homeowners as Loans Sold in Bonds Vanish"