Kentucky Attorney General Jack Conway Wednesday announced that under the terms of the national mortgage settlement, two million postcard notices have been mailed this week to U.S. homeowners who lost their homes to foreclosure between Jan. 1, 2008 and Dec. 31, 2011.
Notices were mailed on Sept. 17 to bout 5,400 Kentucky homeowners who were foreclosed upon during the relevant time period, and who are now eligible for payments totaling $10.7 million, according to a news release from Conway’s office.
Depending upon the number of eligible participants, the amount payable to these borrowers will be up to $2,000 per eligible household. To be eligible, homeowners must have had loans serviced by Ally/GMAC, Bank of America, Citi Bank, JP Morgan Chase or Wells Fargo and lost their homes either through sheriff sale, short sale or deed in lieu of foreclosure between Jan. 1, 2008 and Dec. 31, 2011.
“In communities across Kentucky and the nation, homeowners affected by the mortgage foreclosure crisis are getting much needed relief as a result of this historic settlement,” Conway said. “This settlement is about providing second chances for those who have lost their homes or owe more than their homes are worth. If you believe you are eligible for relief under this settlement, please watch for important communications from my office in the coming days and weeks.”
The postcard notice was mailed to the last known address of eligible borrowers based on records obtained from the banks. The postcard will be followed by a letter on Office of the Attorney General letterhead instructing these borrowers how to apply for monetary benefits under the settlement. A copy of the notice is available at http://ag.ky.gov/mortgagesettlement/Documents/mortgage_settlement_notice.pdf.
A follow-up letter with paperwork to complete will be sent directly to consumers from the attorney general in October. An example of the letter may be viewed by using the following link http://ag.ky.gov/mortgagesettlement/Documents/mortgage_settlement_letter.pdf . Homeowners should receive a letter and claim form from the Attorney General by Oct. 19.