The Chicago Personal Injury Law Blog

How to Collect From $25B Bank Foreclosure Settlement?

Attorney generals from several states reached a historic bank foreclosure settlement in 2012 with the largest banks in the nation. But are you eligible to collect?

The settlement resulted in a $25 billion award being made available to victims for fraudulent and misleading mortgage and foreclosure practices by lenders like Bank of America, Wells Fargo, Chase, CitiGroup, and GMAC.

But while billions were made available, you may be wondering how you can make your claim if you have been harmed by deceptive banking practices.

Am I Eligible for Benefits?

First you will need to determine if you are eligible for benefits. Generally speaking, you may be eligible for a part of the settlement if Bank of America, Wells Fargo, Chase, CitiGroup, or GMAC handled your mortgage payments and you fall into one of the following categories:

  • You lost your home anytime between January 1, 2008, and December 31, 2011.
  • You owe more on your home than it is worth, you are 30 days or more behind on your mortgage payments, or you are at risk of falling behind on your mortgage payments.
  • You owe more on your home than it is worth and you are current on your mortgage, and you are seeking to refinance your loan.

What Should I Do?

The Attorney General's Office should contact you via a settlement administrator. If you do not receive a call or have a question, you can call the Illinois Attorney General's Homeowner Hotline at (866) 544-7151 or visit its website to leave your contact information.

Contact an Attorney

You should be aware that just because you fall into one of these above categories, this does not automatically mean you will collect damages. Even if the Attorney General's Office contacts you, you may later be deemed ineligible.

If you have questions about your right to collect damages and the answer given by the Attorney General's Office is not satisfactory, you may want the assistance of a Chicago consumer protection attorney. An attorney can evaluate your claim and help fight your battle to recover what you are justly owed.

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