Tens of thousands of Palm Beach County homeowners are now eligible for compensation under a re-vamped federal settlement with financial institutions, the Palm Beach Post reported. The settlement eliminates the Independent Foreclosure Review, a federal regulation that allowed owners whose homes were foreclosed on in 2009 or 2010 to request an independent review.
According to agreements released yesterday by the Office of the Comptroller of the Currency, $3.6 billion in cash will be put into a fund in the next two weeks for distribution to owners whose homes were foreclosed on during the period. Another $5.7 billion in principal reductions will also be distributed, the Post said.
The agreement is separate from the $25 billion settlement between banks and numerous state attorneys general reached in February of 2012.
The agreement, which will provide relief even to former owners who do not believe their lender foreclosed improperly, will replace the foreclosure review because the latter was too costly and time consuming, according to federal regulators. Affected parties can expect a letter informing them of their award package, which could include as much as $125,000 in cash. [Palm Beach Post] –Guelda Voien