An Auburn woman is among 4.2 million Americans who will be receiving checks soon because of the way their foreclosures were apparently mishandled.
Marie Treat received a postcard from the Independent Foreclosure Review notifying her that she will be part of a huge settlement between the Federal Reserve and 13 banks and mortgage service providers. Under the agreement, the lending institutions have agreed to pay out $9.3 billion to people who were affected by errors in the foreclosure process. The checks will range from hundreds of dollars to as much as $125,000.
Marie Treat says, "That notification is my validation. I fought them for 3 and a half years and their shenanigans." Treat's troubles began in 2007 during the foreclosure quagmire following the housing bubble burst which threw the economy into a tailspin. She says Wells Fargo claimed she was behind on her mortgage payments. Treat's home in Auburn was put into foreclosure by America's Servicing Company which hired the Steven J. Baum lawfirm to take her to court.
Treat says it wasn't until CNY Central's Jim Kenyon began reporting on her battle that Baum backed off and allowed her to re-finance her home with a local bank. "I believe in my heart that it ended because of your story." Treat told Kenyon Wednesday.
During the battle, the New York Attorney General's office began looking into alleged questionable tactics by the Baum law office. Last year, the firm closed its doors.
Now that Treat has been notified of the pending compensation from Wells Fargo and America's Servicing Company, she says, "I'll never get all my money back. I'll never get my peace of mind back. I'll never get all the nights that I sat up and cried while my kids were asleep back. That will never happen, but this is a good step forward for me to say...I did the right thing."
Treat points out that she will continue a lawsuit in hopes of recovering thousands of dollars in legal fees and re-establish her credit score.