The overseer of a settlement with JPMorgan Chase said Thursday that he has credited the nation’s largest bank with $2.2 billion out of the $4 billion it is required to provide consumers, mainly in the form of mortgage relief, by 2017.
In the best-case scenarios for these homeowners, they will be able to stay in their foreclosed-upon home indefinitely without paying a mortgage — although they probably won’t be able to sell the property.
About 549,000 homes in the United States were in some stage of foreclosure as of January 2015, compared to 822,000 in January 2014. That’s a significant decrease of 33.2 percent.
The checks are being sent by the paying agent, Rust Consulting, to replace uncashed checks that have now expired.
Meanwhile, the number of future foreclosure auctions scheduled in January increased in many states, signaling additional foreclosure “spring cleaning” to come in the next several months.
The 1.1 million properties with foreclosure filings in 2014 is the lowest annual total since 2006, when there were 717,522 properties with foreclosure filings nationwide.
Almost 122,000 short sales closed nationwide between January and October, with an estimated average debt forgiveness of about $88,500.
The whistleblower, an Ocwen employee, contacted Smith after noting “serious deficiencies” in Ocwen’s internal review group, which is suppose to report servicing issues to Smith’s office and meet new standards to ensure borrowers are treated fairly.
The foreclosure inventory was down 34.1 percent, marking the 36th month of consecutive year-over-year declines.
A decline in the index signals that lending standards are tightening, making it harder for potential homebuyers to secure a mortgage.