If your foreclosure did not seem right, get it reviewed!

If you suffered some stage of foreclosure in 2009 or 2010, you may get the opportunity to have your case examined to determine if you should be compensated for the bank’s mistakes under a review process being planned by federal regulators.  The reviews could be available to millions of people impacted by foreclosures.

This process is aimed at compensating homeowners and former homeowners who were damaged by the “robo signing” and other documentation issues that surfaced about one year ago.

Borrowers who are determined to have suffered “financial injury” could be eligible for compensation that would be determined on a case-by-case basis by the third-party firms. Borrowers will have to request reviews before a cutoff date, likely to fall near the end of the first quarter of 2012. It hasn’t been determined whether borrowers that accept restitution would have to agree to surrender related legal claims.

Regulators declined to provide estimates of the amount of money that injured borrowers might receive or how much the program might cost lenders.

However, few if any borrowers are expected to have foreclosures overturned. – WSJ

Compensation could be made for misrepresentations made by the lender, impermissible fees or penalties, miscalculated mortgage payments or even if the payments were made for a loan modification and the bank foreclosed anyway.