In an effort to help even more households across the country, the Federal Reserve and the Office of the Comptroller of the Currency recently announced they will extend the deadline for the foreclosure review process.
Under the initiative, borrowers who feel their homes were wrongfully repossessed between 2009 and 2010, will now have until the end of the year to request a review of their cases, the agencies said. As of the end of May, just 193,639 borrowers had requested assistance through the program, although analysts feel millions could qualify.
Should a case be reviewed and evidence of wrongdoing is found, borrowers may be eligible for financial compensation between $500 and $125,000, plus any equity the foreclosed houses might have gained. A majority of lender missteps include problems with documentation and dual-track foreclosures.
This is the third time the program's end date has been extended, and it was originally scheduled to come to a close in April. However, third-party consultants hired to review each individual case continue to call on federal regulators for more time.