Independent Foreclosure Review deadline extended

The deadline to apply for an independent foreclosure review by the federal government has been extended to Dec. 31, 2012.

Federal Reserve and Office of the Comptroller of the Currency (OCC) previously set a July 31, 2012, deadline, but they said they added 5 months, so more individuals could apply. Nearly229,000 borrowers have applied for an independent foreclosure review as of July 30, 2012, Bryan Hubbard, who is an OCC spokesperson, tells Consumers Digest.

Borrowers who went through the foreclosure process from Jan. 1, 2009, and Dec. 31, 2010, are eligible for a review if their mortgage was serviced by the following companies: America’s Servicing, Aurora Loan Services, BAC Home Loans Servicing, Bank of America, Beneficial, Chase, Citibank, CitiFinancial, CitiMortgage, Countrywide, EMC, Everbank/Everhome Mortgage, Financial Freedom, GMAC Mortgage, HFC, HSBC, IndyMac Mortgage Services, MetLife Bank, National City Mortgage, PNC Mortgage, Sovereign Bank, SunTrust Mortgage, U.S. Bank, Wachovia, Washington Mutual, Wells Fargo or Wilshire Credit.

If a review finds foreclosure errors that caused financial injury to the mortgage borrower, such as an improper fee that resulted in a lowered credit score, that individual could receive at least $500 in a lump-sum payment from the company that serviced his/her mortgage in 2009–2010.

For more information, consumers can call 888/952-9105, Monday–Friday, 8 a.m.–10:00 p.m., and Saturday, 8:00 a.m.–5:00 p.m. ET or go to independentforeclosurereview.com.

Consumers Digest previously reported on how to navigate through foreclosure options in "The Foreclosure Trap: How to Save Your Home" in the March/April 2011 issue.

– K. Fanuko