REFUNDS being Issued by Rust Consulting?? for the OCC

[spidge]

They keep lowering the amount on the settlement first 840 or more then I read a couple hundred. I just read that some states that are getting money to help people with their home are gonna use the money to fill gaps in their budget and other things such as heating grants. Well I think I am getting predjusted sooo people who work get nothing because they make too much, if you do not work, get married or have alot of kids you get everything medical insurance no deductibles free food cheap rent help with electric. Anyway this money is meant to help homeowners its a shame if they use it for other things.

Where have you read that states have a right to this money?

[justbroke]

They keep lowering the amount on the settlement first 840 or more then I read a couple hundred. I just read that some states that are getting money to help people with their home are gonna use the money to fill gaps in their budget and other things such as heating grants. Well I think I am getting predjusted sooo people who work get nothing because they make too much, if you do not work, get married or have alot of kids you get everything medical insurance no deductibles free food cheap rent help with electric. Anyway this money is meant to help homeowners its a shame if they use it for other things.

I have never seen, read, or was told, from the OCC or Rust Consulting, that it was $840 for each of the 4.3 million homeowners. Someone took the $3.6B dollars and divided it by 4.3 million people to come up with an average. From everything that I read from the official sites (OCC, Rust Consulting), the payment could be a "couple of hundred dollars" up to $125,00 for the most egregious cases. The OCC is responsible for setting the categories and determining the payment. Some of the things that the settlement covers are simple things like, they forgot to include some document in the foreclosure. It did not affect the foreclosure, but it was wrong. A person surrendering in a bankruptcy anyhow, which was letting the home go, may have had the automatic stay violated in some way. This is another minor category. Please be aware that the "original" categories are being re-written for distribution purposes. The OCC is determining what the distribution is going to be.

Personally, while I would love it if all 4.3 million people got $840, that would dilute the settlement for those who were actually harmed. Think about those military people who had their home foreclosed upon while they were deployed. That was a category in the "original" category list which was to receive $125,000. I think they deserve more than $840.

I wonder when their sending out the checks. Too bad they do not tell anyone what their getting. Do you think it will be taxed?

They said 4-8 weeks on the website. In all likelihood, this is "ordinary" income and could be taxable income as well. In fact, their Website (Office of the Comptroller of the Currency - OCC) specifically advises those that receive the payment, that it may be taxable and to check with a tax specialist. Additionally, those with public benefits could also be affected by the amount of the payment.

Remember, if you feel that you were harmed, the settlement does not stop you from opening a case and suing the lender directly.

Also, regarding what the States are getting... I think you misunderstand something. There are different lawsuits going on. There was a separate one between the AGs of several States and the banks. That is not this settlement. This settlement actually has two parts. One part is the money which goes to the homeowners (current/former). The portion that we are talking about is $3.6B and is the direct payments. There's another $5.7B that is used for mortgage write-downs (principle reductions) and modifications (including deficiency forgiveness). (That was a total of $9.3B.)

[tobee43]

usually settlement checks are not taxable and in this case i'm wondering if they an fit neatly under some type of capitol loss. which i think will happen. however, i'm still doubtful it will be that much to worry about. time will tell!

[goon]

New information today on the Independent Foreclosure Review settlement

http://www.occ.gov/news-issuances/news-releases/2013/nr-ia-2013-60.html

http://www.federalreserve.gov/consumerinfo/independent-foreclosure-review-payment-agreement.htm

Payments will start being issued on April 12 and will range from $300 to $125,000 ( keep in mind this is completely separate from the National Mortgage Settlement which will have payments that exceed $840)
Most payments should be sent in April, but a small number could take up to mid July.

This is a summary of how many people fall into each payment bucket

http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20130409a1.pdf

[goon]

"Servicer initiated or completed foreclosure on
borrower who was protected by federal
bankruptcy law"

I wonder if this still applies if the home was surrendered in the BK (and they were granted a relief of stay).... if so I could be in for a nice big check... but I doubt it.

[Colorfulstom]

Goon I was wondering the same thing since I am in the same situation. A nice big check would be nice but even if it is the $300, it would be $300 more dollars than I have in my pocket now.

[spidge]

"Servicer initiated or completed foreclosure on
borrower who was protected by federal
bankruptcy law"

I wonder if this still applies if the home was surrendered in the BK (and they were granted a relief of stay).... if so I could be in for a nice big check... but I doubt it.

I guess we know who will be buying drinks.

I'll buy one round of beer during happy hour and whatever is on special.

[justbroke]

The minimum is $300, so we should all be able to pay a bill or use it towards a mortgage payment. I wish I knew which category that I was in!

[Toby629]

I hope in the letter they explain how they arrive at our compensation. Looking at the categories listed in the link, I could see we fall in 3 categories, will be good to know how they arrive at our total comp check. Would be nice to get more than $300, but anything really is appreciated.

[justbroke]

It would be interesting how they figure it out. If they look at mine, perhaps I fall into the category of the lender attempting foreclosure while I was in bankruptcy (although they filed a motion for relief!). I also fall into the modification approved category. Strange.

I did not file my paperwork during the review period which ended December 31 (2012). So, it looks like I'm entitled to half of whatever. I only wish I knew what "whatever" was, but it looks like at least $300 and maybe $3,750?

[Toby629]

justbroke, we fall in the same category as "lender attempting foreclosure while in bankruptcy" plus modification of loan, and one other one. Just hope we fall into this first mailing of checks.

[spidge]

It bothers me that those who trusted the decision makers to do a review and be included in it, are rewarded for it. That trust is what got us into the mess. Not to take away from any money passed out to anyone, it just bugs. It was those decision makers (power brokers) who caused much of this.

I'm guilty of it too, as I was suckered in as many others were.

Stepping down now.

[justbroke]

Well, I agree with the sentiment that those who trusted a strange letter from "Rust Consulting" could receive 100% more than those who did not respond. I actually left the original letter on my bathroom counter for 2 months! I did not know if it was real, but I thought it may be real. I did not respond because I thought it was another of those $2.00 class-action lawsuit deals. I didn't want to get all my paperwork together for $2.

Hindsight is 20/20! If I qualify for the $7,500 automatic stay violation, then my ineptness will have cost me $3,750.

(They also never recorded my modification, so I wonder if that counts too? So many issues with my mortgage account, it's not funny!)

Now, back to "Check Watch" already in progress!

[spidge]

I did not think the late 2012 card was legitimate either so I filed it in the recycle bin. So my concern of getting taken again will be rewarded with $300 rather than $500. Whoopee. Not much to begin with anyway. Week I tell ya.

Where is the smiley where I am getting the shaft you know where?

[Toby629]

Well, got the check today from Rust Consulting Inc for $300.00. The explanation given for the amount of payment, why you are receiving the payment is as follows: "Regulators determined your payment amount based on the stage of your foreclosure process and other considerations related to your foreclosure." Just sounded like a generic explanation to us. Most of the checks are for $300.00, not surprising, they just want to get the money distributed. It also says in the letter that "The payment amount is final. There is no process to appeal the payment." The $300 is what it is. Surprised really that anybody got anything at all.