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 from across the country and five major banks — Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co., Citibank, and Ally Financial Inc., owner of GMAC Mortgage.
“These payments will help those who were foreclosed in recent years by entities we allege didn’t follow proper servicing standards,’’ Coakley said.
The agreement was reached in February to settle allegations about so-called robosigning — claims that lenders’ employees signed foreclosure documents without reading or properly reviewing the paperwork. The settlement includes $1.5 billion for former homeowners as well as $20 billion in financial help for struggling borrowers, including principal reductions and refinancing help.
Former borrowers who had mortgages serviced by the five lenders and lost their homes between 2008 and 2011 are eligible for at least $840 each, Coakley’s office said. The final sum depends on how many former homeowners file claims, state officials said. If all eligible borrowers in Massachusetts filed claims, the state’s allotment would be larger than $14.6 million.
Last week, an administrator for the national settlement mailed postcards to borrowers across the nation to notify them of their eligibility for the 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 e-mail at email@example.com, or by telephone at 1-866-430-8358.