Friday is the deadline for homeowners to file a claim under a national mortgage foreclosure settlement from 2012.
The $25 billion settlement sets aside about $1.5 billion for eligible borrowers nationwide.
The settlement stems from a lawsuit against the nation’s largest mortgage servicers, including Bank of America, JPMorgan Chase, Ally/GMAC, Citi and Wells Fargo.
The banks are accused of fraudulent practices while servicing loans of struggling homeowners including the use of “robo-signing” foreclosure documents during 2008 to 2011.
But the exact payout for those borrowers depends on how many people file a claim by today.
Attorney General Lisa Madigan says about 64,000 people in the state could be eligible.
“There’s not enough [money] obviously to compensate you if you lost your home, but it is compensation that may allow you to pay a number of months of your rent and pay for the other utilities and bills that you and your family still face,” she said.
Madigan says settlement packets were mailed out to those who may be eligible. But she says borrowers should still file a claim if they think they had a troubled loan from one of the servicers during the time period.
“You don’t have to prove financial harm to receive this payment, and you also don’t give up any of your legal rights if you sign up for this or accept it. So if you have an ongoing lawsuit against the servicer or if you plan on bringing a lawsuit against the bank, you can still do that and collect this money,” she said.
Eligible borrowers can file a claim online by tonight.
For help, contact the settlement administrator at 1-866-430-8358 or send questions by email to firstname.lastname@example.org.
Payments are expected to be delivered by mail in mid-2013.