WASHINGTON (Associated Press) – Following a settlement with federal agencies in January, 13 of the largest U.S. banks are beginning cash payouts totaling $3.6 billion to Americans who were wrongfully foreclosed on during the housing crisis.
Some 4.2 million borrowers who lost their homes to foreclosure in 2009 and 2010 will begin receiving checks ranging from $300 to $125,000.
The largest payments will go to military personnel whose homes were foreclosed in violation of a law prohibiting foreclosures on active-duty service members, and to a small number of borrowers who were not in default but lost their homes anyway.
About 90 percent of borrowers under the settlement will receive payments by the end of April. The last group of payments is expected to go out by mid-July.
