Homeowners could cash in on banks' foreclosure mistakes - CBS 5 - KPHO

Homeowners could cash in on banks' foreclosure mistakes

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If your home went into foreclosure in 2009 or 2010, you may be entitled to compensation.

New information is coming out that major banks may have made mistakes, by pushing people into foreclosure when they're homes could have been saved.

Bank of America, Chase and Wells Fargo are among the banks accused of making mistakes on millions of mortgages across the country, according to federal investigators.
 
"It's just plain wrong," said Sara Jones of Glendale.
 
"In any other business you'd be held accountable," said Tom Tinker of Phoenix. "I definitely think they should be held accountable."
 
Federal regulators are now planning a wide-spread review process that will give current and former homeowners a chance to have their foreclosure cases examined to determine whether they should be compensated for the banks mistakes.
 
The types of mistakes include miscalculating mortgage payments, pushing people into default prematurely and foreclosing on homeowners who were in the process of a loan modification.
 
Jim Olsen is a Valley attorney who said that he has hundreds of clients who were unfairly foreclosed on.
 
According to Olson, one of the biggest problems has been banks overwhelmed by the number of cases coming in, then pushing foreclosures forward, without looking individual cases over.
 
Olson also said that one bank department doesn't always talk to another.
 
"If you come into work and have 50 files sitting there, you don't have time to go through all the  files, so you just start wholesale foreclosing," Olson said.
 
It is still unclear how much compensation homeowners could receive if mistakes were made on their foreclosure.
 
"I don't know if they'd ever be able to compensate for the loss of a home or loss of credit or loss of lifestyle," said homeowner Mary Lee Madison.
 
A final plan on how homeowners can apply for foreclosure compensation is expected to be released in the next few weeks.

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