Some NC Residents Still Eligible for Portion of Ocwen Settlement

Some NC Residents Still Eligible for Portion of Ocwen Settlement
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August 25, 2014

The deadline is approaching for North Carolina residents whose homes were wrongly foreclosed by Ocwen Financial Corporation.

As part of a $125 million national settlement, homeowners who lost their homes through faulty foreclosures are eligible to receive some money back. The deadline to file paperwork is Sept. 15. Alleged misconduct by Ocwen resulted in premature and unauthorized foreclosures, violations of homeowners' rights and protections, and the use of false and deceptive documents and affidavits.

The 2013 settlement requires Ocwen to pay $125 million to about 184,000 borrowers nationwide. Each individual homeowner is likely to receive payments between $679 and $1,235 depending on the number of people that file claims.

According to state Attorney General Roy Cooper's office, only 35 percent of the state's 3,500 affected residents have filed claims.

North Carolina consumers who lost a home to foreclosure between Jan. 1, 2009 and Dec. 31, 2012 and whose loans were serviced by Ocwen, Litton Loan Servicing LP, and Homeward Residential Holdings LLC (formerly known as American Home Mortgage Servicing, Inc. or AHMSI) should have received a package with a cover letter, claim form and instructions in English and Spanish in the mail.

Consumers who believe they are eligible but have not received information about the settlement should contact the settlement administrator at (866) 783-5382.