Robo-Signing Victims Have Another Option

Washington, DC, Feb. 20, 2012 -- Millions of homeowners who were hurt in the so-called robo-signing scandal now have two ways of getting a lender payback.

They can take advantage of the recent $26 billion settlement between the state attorneys general and the country's five biggest banks.

However, there's also an earlier, less publicized settlement that could lead to an even bigger payoff.

Last April, 14 mortgage servicers agreed to hire independent consultants to investigate foreclosure abuses and compensate those who suffered financial harm.

As a result of the program, up to 4.3 million borrowers who were foreclosed on in 2009 and 2010 will have a chance to request an independent review of how their foreclosure was handled.

However, only 90,000 eligible homeowners have submitted claims, prompting the government to extend the deadline for applications to July 31.

The reimbursements could cover just a single fee but borrowers who suffered much larger financial losses could eligible for much bigger payments.