Under the terms of a national settlement agreement, borrowers are eligible for a minimum of $3,011. The exact amount of the payment depends on how many agree to the settlement. New Jersey is one of 39 states that brought a civil action against Countrywide alleging mortgage fraud.
''These settlement payouts are important, because they provide some degree of recompense to borrowers who were signed into inappropriate or bad loans and, ultimately, suffered financial harm, '' Attorney General Anne Milgram said.
“The Countrywide settlement is just one part of the comprehensive effort we have undertaken to help distressed borrowers during these difficult financial times,” the Attorney General added.
The Office of the Attorney General has filed a total of 11 civil mortgage fraud complaints naming 102 individual and corporate defendants, affecting more than 950 victims and property worth more than $29.1 million. The state has also obtained indictments or guilty pleas in seven criminal mortgage fraud cases involving a total of 10 defendants who were charged with victimizing close to 60 individuals and banks in connection with loans worth nearly $11 million.
Borrowers meeting the criteria listed below are eligible to receive a settlement payment from Countrywide:
- The loan was made by Countrywide;
- The loan was secured by an owner-occupied property;
- The first payment on the loan was due between January 1, 2004 and December 31, 2007; and
- The Borrower lost the property securing the loan through foreclosure, deed in lieu of foreclosure, or a short sale on or before March 31, 2009.
In order to receive the payment, eligible borrowers must sign a release giving up their right to sue the company. Additionally, they must respond to Countrywide’s claims administrator, Rust Consulting, by September 23, 2009. Borrowers with any questions about the release are encouraged to speak with a personal lawyer. They can also contact Rust Consulting at 1-866-411-6987 or via www.countrywidesettlementinfo.com if they have questions.
