Today Show Airs on Foreclosure Review: Foreclosure Compensation Checks Arrive, but Anger Some Homeowners

Foreclosure compensation checks arrive, but anger some homeowners

Note: Thank you to everyone who emailed us at the Today Show’s request to put this story together!

Great job to the selected few. (We had nothing to do with the final choices)

By Lisa Myers and Rich Gardella
NBC News

Millions of American homeowners who have struggled with foreclosures are now receiving checks for compensation from the companies that serviced their mortgages — part of the federal government’s efforts to resolve the foreclosure crisis. But some of those receiving checks tell NBC News that the payments are an insult that neither punishes the banks enough for “deficient” practices nor helps harmed homeowners recover.

Karen Pooley, 50, of Seattle, told NBC News that she fell behind on her mortgage after losing her job in the building industry in early 2009, and received a notice of default in February 2010.

Pooley said she’s been fighting to save her home from foreclosure for the past three years.   Believing that her servicer did not follow legal procedures, she said she has contested the foreclosure through her state’s foreclosure process, and managed to stop three foreclosure sales.  She said she also has tried to get authorities to investigate.

Last month, she received her settlement payment, a check for $300.

“It was more than pathetic. It was insulting,” Pooley told NBC News. “I spent more in money on postage providing government agencies with detailed descriptions of what had happened in my case.”

More here…


4 Responses to “Today Show Airs on Foreclosure Review: Foreclosure Compensation Checks Arrive, but Anger Some Homeowners”
  1. LInda OToole says:

    I tried to save my home for 3 years. I was told I qualified for a HAMP modification and received notice I did. I paid all trial payments timely, filed a request for review with Rust (received letters from them acknowledging receipt of my request for review too). My foreclosure was complete in 2012. I am in the category to receive 50,000. I got 2,000 a few weeks back. If my lender, PNC, had any say in what I got, I can assure you they were either dishonest or negligent in calculating the amount. There is NO oversight. should review these amounts. PNC is doing whatever it wants again.

  2. Pennies on the dollar?? ARe you kidding me? It doesn’t even cover the cost of the documents the bank required me to submit for 3 years!!!

  3. talktotennessee says:

    What was the criteria that dictated the amount of settlement? Most people got $300 but I know people who had filed lawsuits that got more. Those who registered formal complaints with OCC and the original program also received more.

  4. Stupendous Man - Defender of Liberty, Foe of Tyranny says:

    It doesn’t even rise to being pathetic.

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