More than 21,000 former homeowners who lost their Massachusetts properties to foreclosure between 2008 and 2011 should soon receive forms to apply for cash compensation, Attorney General Martha Coakley said Wednesday.
They will share in about $14.6 million allotted to the state as part of a $25 billion national mortgage settlement between attorneys general and five major banks—Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co., Citibank, and Ally Financial Inc., owner of GMAC Mortgage.
The agreement was reached in February to settle allegations about so-called robosigning— claims that mortgage company employees routinely signed foreclosure documents without reading or properly reviewing the paperwork.
“These payments will help those who were foreclosed in recent years by entities we allege didn’t follow proper servicing standards,’’ Coakley said in a statement.
The amount of money each former Massachusetts property owner will receive depends on how many file claims, according to state officials.
Last week, an administrator for the national settlement mailed postcards to borrowers across the US to notify them of their eligibility for payments. Borrowers can complete the forms and return them by mail or file them online at www.nationalmortgagesettlement.com. The deadline for filing an application is Jan. 18.
For more information, contact the bank settlement administrator by email at firstname.lastname@example.org, or by telephone at 1-866-430-8358.