U.S. regulators have extended the deadline for review of foreclosures conducted between 2009 and 2010.
The original deadline for foreclosure review was Sept. 30th, but lackluster participation has led regulators to extend the date.
Although letters were sent out to those eligible for review, many people were confused about the process or had difficulty understanding the terms of review. A report by the Government Accountability Office found that the letters sent to consumers were too complex or missing some critical information on how to apply for review.
“The deadline extension provides more time to increase awareness about the Independent Foreclosure Review and the how eligible borrowers may request a review, and to encourage the broadest participation possible,” two regulators said in a joint statement.
The reviews are part of the national foreclosure settlement reached in April of this year, following an investigation into the paperwork and servicing practices of 14 mortgage lenders.
The reviews are conducted by independent regulators to determine if a homeowner was subjected to wrongful foreclosure or lost their homes to incorrect or fraudulent paperwork. If regulators find any inconsistencies in their foreclosure documents, the homeowner could receive compensation. Some borrowers are eligible for up to $125,000.
Communities all across the country have been hit hard by the foreclosure crisis. The numbers of foreclosures have been rising for the past two months, but are significantly lower than last year, showing signs of slow recovery in the housing market.
Preventing foreclosure is not only beneficial for the homeowner, but also for their neighbors. Those facing the possibility of losing their home should consult with a foreclosure attorney to see if they qualify for a mortgage modification or other alternative.