Foreclosure Settlement Information Mailed To Qualifying Homeowners

Foreclosure Sign Outside Home

Kentucky Attorney General Jack Conway today announced that pursuant to the terms of the national mortgage settlement, two million postcard notices have been mailed this week to U.S. homeowners who lost their homes to foreclosure between January 1, 2008 and December 31, 2011.

Notices were mailed on September 17, 2012 to approximately 5,395 Kentucky homeowners who were foreclosed upon during the relevant time period, and who are now eligible for payments totaling $10.7 million. Depending upon the number of eligible participants, the amount payable to these borrowers will be up to $2,000 per eligible household. To be eligible, homeowners must have had loans serviced by Ally/GMAC, Bank of America, Citi Bank, JP Morgan Chase or Wells Fargo and lost their homes either through sheriff sale, short sale or deed in lieu of foreclosure between January 1, 2008 and December 31, 2011.

- Advertisement -

"In communities across Kentucky and the nation, homeowners affected by the mortgage foreclosure crisis are getting much needed relief as a result of this historic settlement," General Conway said. "This settlement is about providing second chances for those who have lost their homes or owe more than their homes are worth. If you believe you are eligible for relief under this settlement, please watch for important communications from my office in the coming days and weeks."

The postcard notice was mailed to the last known address of eligible borrowers based on records obtained from the banks. The postcard will be followed by a letter on Office of the Attorney General letterhead instructing these borrowers how to apply for monetary benefits under the settlement. A copy of the notice is available at

A follow-up letter with paperwork to complete will be sent directly to consumers from the Attorney General in October. An example of the letter may be viewed by using the following link . Homeowners should receive a letter and claim form from the Attorney General by October 19, 2012.

What to do if you do not receive a notice and believe you are eligible

Since most homeowners who lost their home have moved on to a new address, General Conway wants to make sure they have an opportunity to participate in this settlement payout. Homeowners who lost their home to foreclosure, short sale or deed in lieu of foreclosure and do not receive this postcard notice and follow up letter, should call a toll free telephone number that has been set up to accept information and provide application forms for payment. The toll free number to contact is 1-866-430-8358. A live operator should be available at this number from 6 a.m. to 6 p.m. daily. Otherwise, a voice message can be left for the administrator. The deadline to make a claim is January 18, 2013.

Details about the settlement eligibility requirements and other benefits can be found at .

Beware of scam artists

The Attorney General also warns all homeowners to beware of potential scams that may surface related to this settlement. There is no cost to eligible borrowers to participate in this settlement. If anyone solicits you by telephone, over the Internet or by direct, written solicitation offering to assist you in obtaining a payment under this settlement for a fee, it is a scam and you should report it to the Attorney General’s Office of Consumer Protection at 888-432-9257 option 3.

Moreover, if you receive any solicitation that is not addressed from the Office of the Attorney General, you should not respond to it. This could be an attempt by a scammer to steal your identity or financial information.

Mortgage Settlement History

Forty nine state attorneys general reached the historic $25 billion settlement with five of the nation’s largest banks in February of 2012. Kentucky received a total of $58 million under the settlement.

In July, General Conway announced the distribution of $19. 2 million in settlement money to agencies that create affordable housing, provide relief or legal assistance to homeowners facing foreclosure, redevelop foreclosed properties and reduce blight created by vacant properties.

More than $38 million is being allocated to consumers who qualify for refinancing, loan write downs and debt restructuring.

According to a post-settlement interim report released in August, mortgage servicers from the nation’s five largest banks provided $14.1 million in settlement-related relief to 477 Kentucky homeowners between March 1, 2012 and June 30, 2012. Borrowers received an average assistance of $29,629. As of June 30, 2012, mortgage servicers were processing relief claims for an additional 219 borrowers totaling $7.4 million.

The report also shows that an additional 84 Kentuckians were able to refinance their homes through the settlement. These borrowers held mortgages that exceeded the current value of their homes. The average interest rate reduction was 3.37 percent.

The banks must provide the remaining benefits over a three-year period or face severe financial penalties.

For additional information and a list of frequently asked questions, visit the Attorney General’s mortgage foreclosure settlement page at .

Previous articleUK To Shift Police Patrol After Fight Before UK- Western Kentucky Game
Next articleUpdate: Lexington Police Officer Involved In Accident
Tom Kenny joined ABC 36 News in June of 2001 as a General Assignment Reporter. A native of Peoria, Illinois, he graduated cum laude with a Bachelor of Arts in Mass Communications from Western Illinois University. He currently anchors ABC 36 News at 5pm, 6pm and 11pm. Tom has more than three decades of experience in broadcast journalism. He is the only broadcast journalist in Lexington television history to be honored with a national Edward R. Murrow Award. Tom was recognized for reporting on a story that gave a rare glimpse inside the secretive world of the Federal Witness Protection Program. He has won an Emmy Award for anchoring and another for investigative reporting, exposing the deceit and potential danger of online diploma mills. Tom has ten other Emmy nominations to his credit for investigative and feature reporting. He has won Associated Press Awards for reporting and anchoring. He has won two Addy Awards for excellence in promotional writing. Tom was the first broadcast journalist in Lexington TV history to be awarded the Silver Circle Award by the National Academy of Television Arts and Sciences. It is one of the highest honors given by NATAS. It recognizes television professionals who have performed distinguished service within the television industry for 25-years or more. Tom was honored for more than his longevity, he was recognized for making an enduring contribution to the vitality of the television industry and for setting high standards of achievement. He was also recognized for giving back to the community as a mentor, educator and volunteer. Tom also has network broadcast experience in radio and television having worked as a sports reporter for ESPN, Sportschannel, NBC Sports and the Breeders’ Cup. He was also the studio host and halftime producer for CBS Radio Sports’ College Football Game of the Week and covered the NFL for One-On-One Radio Sports. Prior to joining WTVQ-TV, Tom was Vice-President of the Houston Astros Minor League baseball team in Lexington. He was part of the original management team that brought professional baseball back to the Bluegrass after a nearly 50-year absence. Tom has lived in Lexington since 1984. In that time, he has been heavily involved with dozens of charity and civic groups, with a special emphasis on helping Veterans. He can be reached at You can also follow Tom on Facebook and Twitter @TomKennyNews. Just click on the links at the top of the page.