Foreclosure Victims Could Get Money From Banks

Jessica Flores

Foreclosure Victims Could Get Money From Banks

CREATED Nov. 2, 2011

If your home was foreclosed on between 2009 and 2010, you could be getting some pay back from big banks. Beginning today, federal regulators are making 14 banks send letters to potential victims of bad foreclosure practices, asking people to file cases if they were wrongfully foreclosed on.

14.3  million people nation-wide will be receiving letters.

"What we don't know is what percentage of those people suffered errors, misrepresentations or deficiencies in the foreclosure process," said Bryan Hubbard, spokesperson for the U.S. Comptroller, which is behind the federal order.

Independent consultants will review the cases people submit to determine if there will be any compensation.  But, Palm Desert realtor Greg Berkemer doesn't think this means consumers who the foreclosure battle.

"There are no winners. You don't get your house back. The fact is that everybody... Both side have responsibilities and both sides can be held accountable," said Berkemer, director of California Desert Association of Realtors.

Most people getting the letters actually still live in their homes, and many of those letters are headed to the Coachella Valley.  

The Coachella Valley hasn't been spared in the foreclosure mess. One zip code in Indio, 92203,  has the highest rate of foreclosure in the valley. One out of every 24 homes were foreclosed in September, compared to the national rate of one in 605. 

This is all part of a federal order making banks such as Wells Fargo and Bank of America, for the first time, pay consumers back for bad foreclosure practices. 

If you think the bank owes you some cash, keep an eye on your mailbox. The letters are going out in phases until the end of the year.

-Jessica Flores KMIR6