For residents in Rhode Island who have lost their homes between Jan. 1, 2008 and Dec. 31, 2011 due to an improper foreclosure process will receive a foreclosure compensation packet in the coming future. According to Projo.com, close to 5,550 Rhode Islander’s will receive a notice by mail about how to file a claim.

Under the $25-billion National Mortgage Settlement, relief will be serviced to “distressed borrowers, states and federal government.” This past February, 49 state attorneys generals and the federal government will assist borrowers who has used the following 5 mortgage servicers:

Ally/GMAC
Bank of America
Citi
JPMorgan Chase
Wells Fargo

However, it must be noted that this $25 billion relief settlement not only will serve mortgage borrowers but direct payments will be issued to states and the federal government as well. According to the National Mortgage Settlement’s official website, this “settlement is the largest multistage settlement since the Tobacco Settlement in 1998.” The severity of the entire situation cannot be accessed case by case however, it can be softened. And what are the details to this case?

State and federal investigations are basing this case with unlawful practices and procedures, more specifically, by “routinely signed foreclosure related documents outside the presence of a notary public and without really knowing whether the facts they contained were correct.”

Payments are to be anywhere between $1,500 to $2,000, according to Amy Kempe, spokeswoman for Attorney General Peter Kilmartin in a recent Projo article.

*Forms must be returned by Jan. 18, 2013. Checks are expected to be mailed in mid-2013. Borrowers with questions may contact the settlement administrator, toll-free, at 1-866-430-8358, or email administrator@nationalmortgagesettlement.com.

(Source: “Foreclosure compensation packets going out to 5,473 in R.I.”-Projo.com)