Massachusetts residents who lost their homes to foreclosure between 2008 and 2011 have until Friday to apply for a one-time payment connected to a $25 billion national mortgage settlement reached by attorneys general and five major lenders.
The estimated 21,000 state residents eligible to receive between $1,500 and $2,000 risk losing out on the payment if they fail to act this week, according to Massachusetts Attorney General Martha Coakley.
The money comes from last year’s settlement to settle allegations of sloppy and fraudulent foreclosure procedures on the part of the lenders. As part of the deal, the companies set aside $1.5 billion to be distributed to about 2 million US borrowers.
“These payments will help those who were foreclosed in recent years by entities we allege didn’t follow proper servicing standards, and we encourage all eligible borrowers to file claims,’’ Coakley said in a statement.
Qualified borrowers include those lost their homes to foreclosure between January 1, 2008 and December 31, 2011, and had loans serviced by one of the top US banks: Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co., Citibank, and Ally Financial Inc.
Borrowers do not have to prove they were financially harmed to receive a payment, Coakley said.
Those eligible for a payout should have received a claim form in the mail, the state said. It advised borrowers who did not receive such notification to immediately contact the settlement administrator at [email protected] or by phone at 1-866-430-8358. For more information, go to www.NationalMortgageSettlement.com.