Checks from Banks to Homeowners Bounce

After the housing collapse in 2008 and the years that followed, after many thousands of homeowners found themselves facing foreclosure, after the long fight toward an eventual $3.6 billion settlement with banks and other mortgage lenders - the checks go out to those homeowners and the checks bounce.

The NY Times quotes the man who runs the website 4closurefraud.org:

"It's the perfect ending for such a debacle."

Just in case you misread this: "Perfect ending" is dripping with sarcasm. The first round of settlement checks, as the NY Times reports, just went out earlier in April, and some would-be check cashers went right to the bank and discovered they couldn't cash them.

The problem apparently lies with Rust Consulting, a company that, among other things, helps distribute settlement checks. Rust did not move the money into the right account to be drawn on, though it says that the problem has been remedied.

Even so, only 25 percent of those who have gotten checks have cashed them, leaving more than one million who haven't, either because of the problems related to Rust or because they simply don't trust the process and are wary of cashing them to begin with.

After all, it comes down to wrongful foreclosure. One man said: "I just want my house back."

At Ledford & Wu, we help people who face home foreclosure and other mortgage problems. To learn more, please visit our Chicago mortgage assistance page.

Source: Mortgage Relief Checks Go Out, Only to Bounce

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