Independent Foreclosure Review: What About $1.2B in Uncashed Checks?


Independent Foreclosure Review: What About $1.2B in Uncashed Checks?Rust Consulting has mailed more than $3.4 billion worth of checks related to the Independent Foreclosure Review since April 12, with the bulk of that amount sent out by April 26.

More than 2.4 million IFR checks have been cashed or deposited for nearly $2.2 billion through May 16, 2013, according to new data Friday from bank regulators.

A final wave of checks that required additional information from borrowers will be issued “during the summer.” Rust Consulting nor regulators can provide a specific date. The total compensation amount is $3.6 billion, leaving $200 million worth of checks to send out.

So why hasn’t $1.2 billion in checks already mailed been cashed or deposited?

Some of that amount belongs to 96,000 settlement recipients whose checks mailed on May 3 were short of the proper amount. Checks making up the difference were scheduled to be sent out Friday.

However, checks worth a total of $3.2 billion had already been sent by April 26 — three weeks ago.

Some recipients will have issues with the names on the check being wrong, or the checks being sent to previous or wrong addresses. Other recipients have likely not cashed or deposited their checks, the vast majority of which are for a few hundred dollars.

Bank regulators say recipients have to cash or deposit their check within 90 days of the date it is issued, or the check will be void.

How many checks were sent to wrong addresses has yet to be determined.

Regulators say that receiving a payment under the IFR agreement will not affect any other actions borrowers are taking with their mortgage servicer, including efforts to prevent a foreclosure sale or to secure a mortgage modification.

“Regulators will determine what will be done with payments that are not cashed or deposited,” says the IFR official website. “We do not have any additional details at this time on what will happen with those funds.”

IFR administrators say that if you did not get a check and you are eligible for compensation, you can call Rust Consulting, the payments administrator, at 1-888-952-9105 — Monday through Friday, 8 a.m.–10 p.m. ET or Saturday, 8 a.m.–5 p.m. ET — to verify if you are eligible to receive a payment.

(Keep in mind, Rust Consulting is also handling $1.5 billion in payouts from a separate agreement to settle foreclosure abuses known as the National Mortgage Settlement. Those checks will be sent out “mid-2013″ — with Rust unable to provide a more specific timetable, despite repeated attempts by eligible borrowers to get answers from Rust executives over the past few weeks.)

Here are a few questions and answers from bank regulators related to problems that may affect getting or depositing the IFR checks.

I LOST, MISPLACED OR DESTROYED MY CHECK. HOW CAN I HAVE MY CHECK REISSUED/GET A NEW CHECK SENT TO ME?
The reissue process requires that you submit a written request for reissuance. Please call 1-888-952-9105 Monday through Friday, 8 a.m.–10 p.m. ET or Saturday, 8 a.m.–5 p.m. ET to request a form for reissuance of the check.

I CHANGED MY NAME, HOW CAN I UPDATE THAT ON THE CHECK?
Checks are issued to the name or names we have on record. Once you receive the check, if you are unable to negotiate it with your bank, we will have a process established to request a form for reissuance of the check. Please call 1-888-952-9105 Monday through Friday, 8 a.m.–10 p.m. ET or Saturday, 8 a.m.–5 p.m. ET to request a form for reissuance of the check.

THE PERSON LISTED ON THE CHECK IS DECEASED. HOW CAN I HAVE A CHECK REISSUED TO ME AS THE BENEFICIARY/EXECUTOR/POWER OF ATTORNEY/ETC.?
The reissue process requires that you provide documentation regarding the deceased borrower’s estate and that you are a beneficiary. Please call 1-888-952-9105 Monday through Friday, 8 a.m.–10 p.m. ET or Saturday, 8 a.m.–5 p.m. ET to request a form for reissuance of the check.

WE’RE DIVORCED, WHO GETS THE CHECK? WHAT ADDRESS DO YOU USE?
All borrowers on the loan will be listed on the check. We will mail the check to the address in our files as of March 1, 2013.

WE’RE DIVORCED OR SEPARATED; CAN WE GET SEPARATE CHECKS?
No, only one check will be issued per loan. The check was issued to all borrowers named on the loan and all borrowers must sign the check to cash or deposit it.

HOW WILL CASHING THIS PAYMENT AFFECT MY TAX REPORTING?
Cashing or depositing the check may affect your taxes. We cannot advise you on your tax liability, if applicable. The letter you receive with your check should indicate the amount which may be reportable as income to the IRS and State Tax Authorities. Tax Forms will be sent in January of next year. You can go to http://www.independentforeclosurereview.com/taxinfo and review the Statement to Eligible Borrowers for some additional tax information.

WHAT HAPPENS IF I DON’T CASH THE CHECK?
You are under no obligation to cash the payment. The federal banking regulators will determine what will be done with payments that are not cashed or deposited. We do not have any additional details at this time on what will happen with those funds.

IF I DON’T CASH THE CHECK, CAN IT STILL AFFECT MY DISABILITY/OTHER BENEFITS?
Cashing or depositing the check may affect your disability or other benefits. If you have questions, we suggest you consult the organization from which you receive benefits for further information.

DID YOU SEND ME A 1099 FORM WITH THIS CHECK? WILL YOU SEND ME A 1099 FORM?
Tax documents, such as 1099s or 1098s or other applicable forms will be mailed to borrowers in January of 2014.  Also, please review the Statement to Eligible Borrowers that is linked on the website, http://www.independentforeclosurereview.com/taxinfo and consult a tax advisor to determine the potential tax consequences and appropriate tax treatment for your individual situation.

All Q&As related to the Independent Foreclosure Review can be found here.


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34 Responses to “Independent Foreclosure Review: What About $1.2B in Uncashed Checks?”

  1. kp says:

    what a crock. Why is the last set of checks delayed for so long? Why is it so difficult to get any answers from ANYONE ?

  2. RE says:

    what ever these people playing games with this money.they sent my check to foreclosure address .first they said they mailed me a form to fill out for change of address back in may never got that.check went out in second wave.now they said my address was updated without a form.what ever.now they say fill out a form to reissued.they on some B S.IM SICK OF THIS SHIT MUTHE%$$#@…..

  3. Rh says:

    My husband called and was told our check will be mailed out on July 15th, the next wave. Ill hold my breath.

  4. Bmartin says:

    Ok. The left over money that comes back will get dispersed to us. This whole situation is crazy but not unusual with these banks. I received checks from Countrywide a yr ago bc of false charges to my account. They sent me 1,800, then another 300 from the uncashed checks then the last check was $34.00 which was the last amount left. They also had a deadline to cash the checks or they’ll bounce. It took them a yr to finish dispersing the rest of the uncashed funds. I think they said Golman &Sax wasn’t included in the 4.2 million people, but it seems as tho it is. I called this morning and they’re still saying UNFORTUNATELY, THERE’S NO INFORMATION AVAILABLE AS TO WHEN YOU’LL RECEIVE A CHECK, BUT U ARE ELIGIBLE TO RECEIVE PAYMENT. CHECKS WILL BE MAILED THROUGH AUGUST. It’s sad that victims are made to wait especially when they didn’t request additional info and also completed the IFR form. This is just ridiculous.

  5. Jd says:

    I didn’t even need additional information & they still haven’t sent my check, the postcard should’ve said four months instead of 4-8 weeks, Idk what these ppl are doing with other ppls money.

  6. Jd says:

    Ig I’ll be checking my mail the entire spring & most of the smmer for this one check if it even comes period. This is nonsense

  7. Lena says:

    I received a W9, which means the IRS needs more information. One of the reasons why I went into foreclosure was because a divorce. My mortgage was under my married name, I have since changed my name back to my maiden name, and changed my SS card. I am assuming this is why I got the W9. However on the Q and A above, it stated that if the check was issued under the wrong name due to a name change, try and negotiate with the banks, and if it doesn’t work Rust will need to reissue the check. They didn’t even give me that chance. I have 2 bank accounts, one with my married name and one with my maiden name. So now I sit and wait, I returned the W9 immediately and Rust cannot give me ANY information on whether they received it and when the check will be issued, or for how much. What a HASSLE

  8. Lena says:

    I was also with LItton, so does this mean since I had the W9 sent to me, do I have to wait for 2 checks? Since they sent out the wrong amounts to Litton and Saxon customers I will be amused if I get the 2nd check first!

  9. BOA scares me says:

    Why are the checks issued to all borrowers named on the loan? If it was not the primary residence of a borrower named on the loan, and/or that borrower is removed from the deed, that borrower has no ownership interest in the property. Nor was the bank trying to take away a home that the absent co-borrower lived in . Therefore; upon receiving documentation of those facts, that co-borrowers name should not be on the check, or the check should be re-issued if already cut.

    Furthermore, if the banks really wanted to get those payments to the harmed parties and had a valid concern that the absent co-borrower might be getting screwed, they could accept those unsigned checks as a credit to the next mortgage payment on the loan (in cases where they were unable to foreclose). Really, this is just another sad attempt by the banks to hang on to a large percentage of the funds, or prevent them from being cashed. 1.2 billion in un cashed checks is quite a large amount.

    I had an absent co-borrower removed from the deed on my home via court order, I also received a $55k judgment against that co-borrower. BOA sent me a letter saying that “We are unable to remove XXXX from the loan as XXXX signed the original note.” Period. That is seriously the only explanation they gave regarding that matter. That is just stupid. If those were the rules, they would not have an assumption department, because assumptions would not be allowed.

  10. Meredith W says:

    We have not recieved a check, and still waiting on our change of address form! We have been waiting since the 28th of March, and was told the form was mailed out on Friday the 17th.

  11. Lena says:

    Today I called Rust and got the “tier two” phone number. Not much help. The lady did confirm that they received the W9, but couldn’t confirm why I got it, when their site says the check could be issued in the wrong name if you did a name change. She also could not confirm when the check would be mailed, if it would be issued in my current name or to my current address that I provided on the W9.. ( I moved in April but my mail is getting forwarded, and I got the W9 forwarded to the new address). She did say that checks would be issued “through” July 15th. no real progress at all!

  12. Harold Burke says:

    I wonder how many checks were mailed to individuals at addresses corresponding with their foreclosed homes.

  13. E. Rucker says:

    I just called Rust and was told my check mailed in the second wave on April 19th. I still havent recieved it. The rep I spoke to said she will re-issue and the new check should arrive in 7-14 days. The postcard they sent over 2 months ago said 4-6 weeks!! I’m disappointed with how this is being handled. If checks are being mailed but not cashed should trigger an alarm to managment. Or maybe the checks arent being mailed out and Rust is just CYA’ing…

  14. adodmk says:

    I started requesting a form to change my name on the check and still haven’t received one. I have filed a complaint with the BBB of Minnesota against Rust. Rust is negligent at this point and when I say negligent I mean employees intentionally not performing their jobs. Here is my experience to date:

    3/8/13 – Confirmed that I was part of eligible group.
    3/18/13 – Spoke to Diego. Let him know that my name had changed since the time of the foreclosure. He spoke to his supervisor and confirmed that they could change the name on their records. I asked him if he needed any documentation from me I.e. divorce decree, marriage certificate. He stated that I did not.
    3/21/13 – Spoke to Kristina. She verified that a request had been put in to change my name and that she would “escalate” the request to her supervisor.
    4/18/13 – Spoke to Sean. He said my check had not been mailed yet. He stated that the name on the records had not been changed. I explained that I had confirmed a month ago that my name would be changed. He explained that the “Fed” had changed the rules and that they were looking up the new procedure. Sean got back on the phone and stated that I would get a form in the mail in ten to fourteen days with the information to change my name. I asked him if this was holding up my payment and he said no. I should receive payment between now and mid-July.
    4/19/13 – Spoke to Routh. She had a thick foreign accent making her extremely difficult to understand. I asked her if my check had been mailed out today and she stated that my check had not been mailed yet. I asked her if the wave of payments today was included in her records and she again stated that my check had not been mailed yet. I told her that what I was asking is if she had information on the checks that had been cut today and she stated no. I asked for her name and she was reluctant to give it to me, but finally agreed.
    4/19/13 – Spoke to Janie. She stated that my check did not go out in the 4/19/13 wave of checks. I explained that I had called on March 18th have my name changed and Rust did not do it. I told her they mailed out a form yesterday and that it would take ten to fourteen days to get to me then I would have to fill it out and Rust will have to process it in the mean time I would get my check from the servicer and not be able to cash it because the name was incorrect. She said “well, you’ll just have to wait fill out the form and have the check reissued”. I asked her why this wasn’t taken care of the first time I called and she stated that maybe they didn’t have the policy in place at that time. A simple name change.
    4/24/13 – Spoke to Maggie. She stated that my check will be mailed out Friday.
    4/29/13 – Received my check.
    5/1/13 – Spoke to Manuel. Manuel asked me to wait a “few more days”. I already explained it had been 45 days since the original request. Left to speak with his supervisor. Supervisor stated that due to backlog I should wait a few more days. I asked how long the backlog was and he stated he didn’t know. I explained I had waited 45 days already. Manuel stated that I did not have place a request on March 18th and I stated who I spoke to and it was confirmed two days later by Kristina. Told him I wanted to speak to his supervisor. Spoke to the supervisor, Francois, he stated that they had the March 18th request but the policy changed after that date. He requested I wait until Monday, May 6th. I stated I would call back at that time.
    5/1/13 – Filed a complaint with the BBB of Minnesota.
    5/7/13 – Spoke to Tom. Told me to wait until Monday, May 13, 2013 and call back then. I told him I had waited long enough and that I had previously been told to call back on May 6, 2013. I told him I wanted to fill a complaint and was put on hold and told they didn’t have anyone there to file complaints with, but he would forward the information on to his project manager and the project manager would contact me. I asked him when and he stated they did not have the information. I told him I would contact Rust directly.
    5/20/13 – Spoke to Kevin. Stated that forms were mailed on 5/2/13 and I should receive them in 7-10 business days. I informed him that it has already been more than 7-10 business days and I have not received the form. He said his mistake they were actually mailed on 5/7/13 and should be here in 7-10 business days. I told him that I keep requesting the same forms over and over again and I’m not receiving them. I asked him what I should do if I don’t receive them this time and he stated talk to a supervisor. I told him this is a return call to a supervisor and he stated he wanted to put me on hold to find out what he should do next. Kevin got back on the phone and now claims that the forms where mailed out on 5/17/13 and I need to be patient. This is day 63 and counting.

  15. Lena says:

    @adodmk- WOW! first of all, nothing takes 7-10 business days to receive something. That is crazy. I wonder why I got the W9, I was assuming because the Mortgage was under my married name and since then I changed back to my maiden name, and also changed my SS card. I wouldn’t have an issue with depositing the check because I still have a banking account with my married name on it, and one with my current name. Have you called the Tier Two phone number for Rust? They seem a bit better, the phone number is 1-866-245-7292

  16. adodmk says:

    Thank you for the number Lena. I actually called the Tier Two number on May 20. I’m just going to keep on complaining…

  17. Karen says:

    Rust is SHADY!! We are still awaiting checks/info on the NMS. It’s going on 6 months since the filing deadline and still absolutely zero information on amount or date or anything. Urrrr…so tired of getting screwed by the man!!

  18. ms.R says:

    Finally some good news from rust. My reissue check form came filled it out and sent it back they mailed it may 17 I got it monday. I’m in cincinnati. My check was in the second wave.so hopefully I’ll see that check soon I can use it. Good luck to all.

  19. Lena says:

    Ms.R I hope they are faster with the reissue check form than they are with the W9 form! Keep those of us who are still waiting updated, and good luck to you! :)

  20. ms.R says:

    Thanks @lena I will. Cant wait to find out what comes from the national mortgage settlement.

  21. Josephine says:

    I haven’t received a check yet and no additional information has been requested from me. All Rust tells me every time I call with questions is I will be getting a check. They have my correct address, etc. What’s the holdup in situations like this? We should be getting more of an explanation.

  22. rocky says:

    rust dont have a clue

  23. ROBERTO says:

    Still waiting, I got w9 form(stupid excuse because I lost $150,000 on the transaction) What the IRS is going to do with loss? Credit Me. This Rust, the Banks, and the goverment still puting fingers in our …… and still trying different sizes.

  24. PO'ed says:

    We received W9 forms because the amount is over 600 and Rust has to report the money amount to the IRS. I am so tired of Rust Consulting I could scream. They keep giving me the run around to about a check they mailed to the wrong address in April. I still have not received a reissued check yet.

  25. Lena says:

    I CHANGED MY NAME, HOW CAN I UPDATE THAT ON THE CHECK?
    Checks are issued to the name or names we have on record. Once you receive the check, if you are unable to negotiate it with your bank, we will have a process established to request a form for reissuance of the check. Please call 1-888-952-9105 Monday through Friday, 8 a.m.–10 p.m. ET or Saturday, 8 a.m.–5 p.m. ET to request a form for reissuance of the check..

    This is a joke! I was with Litton Loans and supposed to get my check May 3rd. Instead I got a W9 form and returned it immediately, and wrote in my correct name as it appears on my SS card, The W9 stated to write in the correct name as it appears on my SS card. I changed my name back to my maiden name from my divorce years ago. I called and checked with Rust, they received it but still couldn’t tell me why I have not gotten a check mailed to me.,I also told them it was no problem to issue the check under my married name as they had it on record because I still have an active bank account with that name, Last week I got a form for a request of reissue of check. I did not return that form because I have never been mailed a check, and Rust confirmed that. Then today I got ANOTHER W9 form, and included was a form to fill out with my correct name, but this time they wanted me to send proof of change of name, such as my divorce decree, I am about to lose it, Rust has told me so many different things I have lost track. Please tell me this hassle is not for $300.00, They have on their web site that they will not report anything under $600.00 to the IRS and since they so badly want to confirm my name change, hopefully it is for over $600.00. My luck it will be 601.00!!

  26. Lena says:

    Adodmk have you received the name change form yet? Did yours come with a W9 as well? At least you received a check, I haven’t even been issued one yet

  27. PO'ed says:

    When we request a name change it will take even longer because Rust does a review and have to send information to OCC to be approved. I was told this information by a guy named David at Rust Consulting.i landed on his desk when I emailed moc.gnitlusnoctsurnull@skrapj a few days later. I have been waiting on a check since April guys.

  28. Rhonda says:

    I received my postcard from IFR in February and I havenot received my check. I don’t understand why the Federal Government has not stepped in to help us since Rust Consulting Firm doesn’t answer the phone nor can answer any questions. The phone number Rust and the IFR lists, is a recording. You can’t speak to a physical person!

  29. Lisa in Michigan says:

    Rhonda when you call Rust just select option 3 and it will connect you to a rep. They will ask you what bank you had your mortgage with and then connect you to their support team. Good luck!

  30. momof7 says:

    How many of the uncashed checks are ones waiting for reissue because they were never received? My check was supposedly mailed on April 12th in the first round. By May 30th they had stopped payment and put it on the list for reissue. I should have had a check in my hand three months ago and they still can’t tell me where it went, when it will be reissued or what day it will be mailed, let alone the amount.

  31. Ella says:

    Yes mines also i sent the form back to them 5/29/13 and i still have not received my reissue check they keep saying the same old crap call back next month or the end of the year bull crap

  32. Frankp says:

    Anyone here still waiting for their nms check? If so was it do to the original check was sent to the wrong address?

  33. Richard Trujillo says:

    Our check was issued June 19, however it was returned no forwarding address. Duh! All prior correspondence received at correct mailing address but check was mailed to my former place of employment? Why? No answer. Spoke with rep in”change of address” unit. Rep input change to system. I was not informed that I needed to submit a form. I was also told that it could be December before a replacement check would be issued. Seems Rust may have hired former employees of Bank servicing employees. Any wonder such massive problems!

  34. Cheryl Flack says:

    Called today AGAIN for the umpteenth time, read the same ole script. No new information on the re-issues,that they sent to the wrong address!!! so they say. Will be re-issued thru the end of the year,blah blah blah!!! What a bunch of crap!!!

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