(Indianapolis, Ind.) - Checks are in the mail or will be soon for some Hoosiers who were victims of the foreclosure crisis.
Indiana Attorney General Greg Zoeller announced Tuesday that Indiana residents with valid claims for compensation from the National Mortgage Settlement will receive their checks this month. The checks, each for $1,480, will be mailed by June 17.
The checks total $26.3 million and will go to 18,488 Indiana residents. Those eligible lost their homes to foreclosure between 2008 and 2011 while their mortgage was handled by any of five major banks: Bank of America, Citi, JPMorgan Chase, Wells Fargo or Ally (formerly GMAC).
“These payments are meant to help compensate borrowers for mortgage servicing abuse," Zoeller said. “The National Mortgage Settlement payments and the new mortgage servicing standards under the review of a national monitor will help ensure the public is protected from similar errors in the future.”
Indiana's share of the national settlement was about $145 million. About $100 million of that amount went to direct assistance to borrowers who lost their homes in foreclosure or sought to refinance. Another $28.8 million went to Indiana’s Low-Income Energy Assistance Program or the Consumer Protection Division of the attorney general’s office.
"Indiana's Legislature wisely channeled the settlement funds my office received into a fund to assist low-income homeowners who were most at-risk to be foreclosed upon and also the most likely to have difficulty paying their energy bills," said Zoeller.
Nationally, the settlement will sent $1.5 billion in payments to more than 962,000 Americans.