KANSAS CITY, Mo. - Later this month, some 30,000 borrowers in Kansas and Missouri will receive a $1,480 payment from the nation's biggest lenders.
The borrowers fell on hard times and into foreclosure. They then submitted a valid foreclosure payment claim through the National Mortgage Settlement.
"While these settlement payments cannot undo a foreclosure, they acknowledge and provide some relief to Missourians for the mortgage servicing abuse they endured," said Missouri Attorney General Chris Koster.
His office announced 23,707 Missouri borrowers will receive a direct payment. Kansas Attorney General Derek Schmidt said 6,350 Kansans will get money. These individuals lost their home to foreclosure between January 1, 2008 and December 31, 2011.
"It's a very lengthy process for the individual to do, and they come to us very frustrated and at the end of their rope," said Ron Farmer of the nonprofit, CHES, Inc ., a HUD-approved foreclosure prevention organization.
Farmer sees homeowners who come in frustrated with dealing with big lenders while trying to dig out of foreclosure. It's a challenging process, and his job is to cut through all the red tape.
"We're able to communicate directly with the decision makers and the servicers," he said.
Last year, 49 state attorneys general and the federal government announced the National Mortgage Settlement with the country's five biggest mortgage providers. Bank of America, Citi, JPMorgan Chase, Ally (Formally GMAC) and Wells Fargo took part in the settlement.
If you have questions about the National Mortgage Settlement, you can call settlement administrator at 1-866-430-8358.