The Real Deal Miami

Few apply for foreclosure settlement payout

Only 41 percent of those eligible for Ocwen payment have applied
August 29, 2014 03:00PM

urlFollowing a $125 million settlement with Ocwen Financial Corp. over foreclosure violations, fewer than half of those eligible for a cash payout have filed a claim – even as the September 15 deadline approaches.

Roughly 31,035 former Florida homeowners were notified that they were entitled to a piece of the settlement, but only 41 percent have responded, Florida Attorney General Press Secretary Whitney Ray told the Palm Beach Post.

The settlement is part of a larger $2.1 billion deal following a federal complaint accusing the Atlanta-based mortgage servicer of “premature and unauthorized foreclosures, violations of homeowners’ rights and protections, and the use of false and deceptive documents and affidavits, including robo-signing.”

To qualify for a payout, a borrower must have lost their home to foreclosure between Jan. 1, 2009 and Dec. 31, 2012, used the property as their primary residence, and made at least three payments on the mortgage. [PBP] Christopher Cameron