Adding insult to injury, many of the checks sent out to victims from the fraudclosure settlement have bounced. The terms of the fraudclosure settlement are bad enough but now it seems the victims will have to wait a little longer after trying to deposit their meager, grossly insufficient check only to have it bounce.
It is unclear how many of the 1.4 million homeowners who were mailed the first round of payments covered under the foreclosure settlement have had problems with their checks. But housing advocates from California to New York and even regulators say that in recent days frustrated homeowners have bombarded them with complaints and questions.
The mishap is just the latest setback to troubled homeowners. It took more than two years to resolve a federal investigation into the foreclosure abuses. Even after the settlement in January, the checks were delayed for weeks.
On some level I guess this immense incompetence should have been anticipated given what preceded it. But wow.
Regulators have said that, as of Tuesday, homeowners successfully cashed or deposited nearly 50,000 checks, or roughly 4 percent of the total checks issued. That leaves nearly 1.3 million people who have either delayed cashing the check or have had problems doing so.
The homeowners unable to cash the checks are not the only ones languishing. Many are still mired in bureaucratic delays, like Nancy Brown, of Fredericksburg, Va., who recently learned that her check will be made out jointly to her and her ex-husband, whom she has lost contact with. As a result, she fears being unable to collect the money.
What a mess. As miniscule as these checks are in comparison to the damage done many of the victims and their families need the money. Now they will have to wait even longer because the banksters who fraudulently foreclosed on them and the government toadies that do the bank’s bidding can’t get their act together.
If you need smoking gun evidence that this a country that favors the rich over the middle class and corporations over people the fraudclosure case is where to look. Both the crime and the coverup tell you everything you need to know about justice in America – the best legal system money can buy.