Some Hoosiers whose homes were foreclosed on between 2008 and 2011 will benefit from a federal government settlement against five major mortgage lending banks for robo-signing.
Indiana joined 48 other states in the largest multi-state settlement since the Tobacco Settlement of 1998, totaling roughly $25 billion in relief.
Indiana received $31.4 million of the award to distribute amongst those who were foreclosed on improperly. Attorney General’s Office spokesperson Erin Reece says the amount of money to be distributed per person depends on how many people file a claim.
“So if 100 percent of the people who are eligible fill out a claim form and submit it, then everyone would get $840,” she says. “If 90 percent do it, then whatever money would be left over would be split among the borrowers.”
The National Mortgage Settlement Administrator distributed about 37,000 packets to Indiana residents. Reece says it is important that those who believe they are eligible but did not receive a form inquire about a claim.
“Unfortunately a lot of the addresses on file for those folks may not still be accurate, and so they may have been foreclosed upon and never updated their new address with the bank, and so their last known address may be inaccurate,” Reece says.
Claims must be filed by January 18, with payments issued by the middle of next year.