Independent Foreclosure Review Program
New Program May Provide Assistance to Foreclosed Upon Consumers
A new program overseen by federal bank regulators and others may provide assistance to foreclosed upon homeowners. The Independent Foreclosure Review is available for consumers whose primary residence was foreclosed upon between January 1, 2009 and December 31, 2010.
“There are many ‘foreclosure relief’ scams out there, this is the first credible program we’ve seen.” Said Beth Schmidt, Counseling Director at Rural Dynamics, Inc. (RDI).
The Independent Foreclosure Review (IFR) will determine whether individual borrowers suffered financial injury and should receive compensation or other remedy because of errors or other problems during their home foreclosure process.
The IFR is monitored by federal bank regulators, the Office of the Comptroller of the Currency, and the Board of Governors of the Federal Reserve System, to ensure a fair and impartial process.
“Through our affiliation with the National Foundation for Credit Counseling, our agency will work with homeowners through this process.” Schmidt said. “This past summer we worked with HUD on the Emergency Homeowner Loan Program and saw some families currently struggling get some relief. We hope the IFR does the same for those who faced foreclosure during 2009 and 2010.”
Some of the errors that the reviewers are looking for include, but not limited to: the mortgage balance amount at the time of the foreclosure action was more than the consumer actually owed; the consumer was following the modification agreement required but the foreclosure still happened; the foreclosure action occurred while the consumer was protected by bankruptcy; or the consumer had completed and submitted the loan assistance/modification documents on time and were waiting decision but the foreclosure still happened.
“While the program cannot give someone back their home or erase the damages caused by a foreclosure that should not have happened, the process may provide consumers some financial or other compensation.” Schmidt said. “As a member of the National Foundation for Credit Counseling, our certified counselors are part of the team that will assist consumers across Montana, Wyoming, and Idaho. We hope individuals and families that had one or more of the above scenarios occur will see this and take action.”
Action includes calling the toll free hotline that has been set up, 1.888.952.9105 . The hotline is open Monday – Friday from 8 a.m. to 10 p.m. Eastern Standard Time (EST) or Saturday from 8 a.m. to 5 p.m. EST. Consumers can learn more about the programming by visiting IndependentForeclosureReview.com
“We want to emphasize, consumers should be wary of any foreclosure program, assistance, or litigation that asks them to pay money up front. Unfortunately there are a lot of scams out there preying on our neighbors who are already down on their luck. Whenever someone is in doubt they should call their local, non-profit financial counseling agency preferably a member of the National Foundation for Credit Counseling.” Schmidt said.
For information about other nonprofit financial consulting services, visit www.RuralDynamics.org. RDI works to help all people achieve financial security. Programs include financial consulting, education, free tax preparation. The agency works across Montana, Idaho, North Dakota, South Dakota, and Wyoming.
