According to the OCC’s new program, up to 4.5 million homeowners who had foreclosures filed against them in 2009 & 2010 will be eligible to have their foreclosures reviewed with an Independent Foreclosure Review to see if there is or was improper or fraudulent activity in their case.
Is There A Catch?
OCCLike most of Obama’s foreclosure prevention efforts, this too has a few flaws. First of all there is no word so far on how compensation will be calculated or rewarded. There is of course also a concern that the “independent investigators” may not be very independent – a reasonable fear considering how beholden to the banks past foreclosure programs have been.
However it will likely throw a further wrench into homeowners’ foreclosure proceedings, so it is a tactic to be considered for people that just need a little bit more time in their homes. But just like with HAMP there may be so many requests that the servicers in charge of the program may not be able to respond to them. Homeowners only have until April 2012 to file their claim so if you want to make use of it you should do it as soon as possible.
To be clear though, this is not a replacement for qualified foreclosure defense. Until your request is confirmed by the regulators this program will not stop an ongoing foreclosure proceeding or prevent a default. If you are already in mortgage trouble you would be doing yourself a much greater favor by getting a free foreclosure defense consultation from an experienced foreclosure defense law firm.