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Mortgage Settlement Checks Bouncing
That’s right ladies and gentlemen money could be on the way. This time the money will come from the Federal Reserve. There is an unprecedented amount of money up to the tune of $3.5 billion which will be sent out by the banks to designated homeowners. Up to 4 million homeowners will become the recipient of this money which came as a result of a settlement the U.S. won against some the large banks. Unfortunately for homeowners though many of the checks that were mailed to homeowners bounced when they tried to cash them.
The Federal Reserve recognized this fact and then posted this statement: “The paying agent for checks being sent to borrowers under the Independent Foreclosure Review has assured the Federal Reserve Board that early problems with some checks have been corrected and that funds are available to cash all checks.”
Some of the homeowners who got their checks early were told the checks could not be cashed. In a statement by Rust Consulting, Inc- the company responsible for distributing the checks they later stated “We apologize to anyone who experienced problems trying to cash their checks. We are working hard and communicating with the banking regulators, the servicers, and other banks to ensure those issues are not repeated.”
Time will tell how this all plays out. One interesting quote that we will end this blog with comes from David Kowal, president Kowal Communications, said: “When does tragicomedy become farce? Foreclosed homeowners who failed to pay what they owe now have big banks failing to pay them what they owe. Hopefully, the banks whose checks bounced will be adding a bounced-check fee to their payments to the foreclosed homeowners.” Kowal later added that even though Rust Consulting, Inc mailed the checks, the responsibility still lies with the banks in the long run.