Ten major banks — including Bank of America, Chase, Wells Fargo and Citibank — will be paying $8.5 in a settlement with federal regulators for “wrongfully [foreclosing] on homeowners who should have been allowed to stay in their homes,” reports the Associated Press.
Homeowners who were affected by the wrongful foreclosures will be receiving between $1,000 to $125,000 from the settlement.
Failing to offer someone a loan modification would be considered a lighter offense; unfairly seizing and selling a person’s home would entitle that person to the biggest payment, according to guidelines released last summer by the Office of the Comptroller of the Currency.
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