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Local:423-954-7180
Local:423-954-7180

400,000 Foreclosure victims had checks sent to the wrong place

For any Chattanooga residents who have had the unfortunate experience of having to go through foreclosure or are currently trying to get through foreclosure, there may be an additional complication. As if a few hundred dollars was supposed to be enough to make up for the travails suffered, now that foreclosure settlement check might have been sent to the wrong place.

As many know, there was a recent foreclosure settlement and over 4.2 million homeowners qualified for some of the $3.6 billion settlement. Many felt that those checks were miniscule compared to the thousands of dollars they lost going through the proceedings, not to mention the loss of their home for some. However, to make matters even worse, it now appears 400,000 checks were sent to the wrong address according to the Office of the Comptroller of the Currency (OCC). That means that around 10 percent of the checks were sent to the wrong address and probably why almost $1 billion worth of settlement checks have not yet been cashed.

Though it is unlikely that most homeowners would such a small amounts as much debt relief, it is still true that any small amount could help pay bills. For any who are still facing financial challenges, they may need to take larger measures to get a fresh start, and that could include filing for bankruptcy. Filing would help eliminate any unsecured debt and could even make paying back secured debt easier. Further, if a bank is suing for a deficiency judgment, a bankruptcy is a way to deal with those claims as well.

Dealing with mounting debt can be difficult for anyone. Seeking out the right assistance is one of the best ways to be sure that the debt is dealt with in the proper manner.

Source: Huffington Post, "400,000 Foreclosure Settlement Checks Sent To Wrong Address," Ben Hallman, July 24, 2013

Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-954-7180
Phone: 423-624-4002
Fax: 423-624-0509
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