Delawareans who lost their home to foreclosure could get money from a national settlement with five banks.
Forty-nine states, including Delaware, reached a $22 billion settlement with five banks: Ally/GMAC, Bank of America, Citi, JPMorgan Chase, and Wells Fargo. The deal settles findings by federal and state investigators that the banks regularly signed foreclosure documents without really knowing whether they were accurate and without the presence of a notary public.
Notification cards were sent to eligible borrowers last week. In Delaware, more than 2,300 people are eligible for as much as $2,000 from the settlement. Between now and October 12, they’ll get more information including a packet with instructions on how to claim their payment. The deadline to claim payments is January 18, 2013.
“These payments will provide real relief for many Delawareans who lost their homes to foreclosure,” said Delaware Attorney General Beau Biden in a statement.
In addition to the payments made directly to homeowners, Delaware will receive $45 million dollars. More than $32 million of that will be used to help current and future homeowners reduce principal on their loans, extinguish second lien mortgage loans, and waive deficiencies in short sales. The money will also help fund the state’s homeowner assistance programs and new investigations into civil and criminal cases related to the foreclosure crisis.