Some foreclosed homeowners could get at least $840 restitution payment

About 432,600 Californians who lost their homes to foreclosure between Jan. 1, 2008 and Dec. 31, 2011 could receive at least $840 under the national mortgage settlement forged between the nation’s five largest mortgage servicers, federal regulators and 49 state attorneys general.

The settlement administrator has sent postcards to these homeowners notifying them to expect a claim form, which they must fill out and return to be eligible for a payment. To qualify, the mortgage must have been serviced by Ally/GMAC, Bank of America, Citi, JPMorgan Chase or Wells Fargo.

In California, the postcard and claim form came from the California Department of Justice/National Settlement Administrator. Claim forms will be mailed between now and Oct. 12.

The settlement set aside about $1.5 billion for payments to compensate borrowers whose loans were serviced by one of the five banks and who lost their homes to foreclosure during the relevant time period. The amount of the payment will depend on how many borrowers return the claim forms. About 1.785 million loans qualify, so if 100 percent of borrowers respond, each would get $840, according to a spokesman for California Attorney General Kamala Harris.

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