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It turns out you can get something for nothing. More than 25,000 homeowners will receive checks from a mortgage lender compensating them for hurt they never suffered, according to an article in the Washington Post.
EverBank Financial, a Florida-based bank, will be writing the checks—each for roughly $1,000—despite the fact that there are no errors in the foreclosure files of those receiving checks. Meanwhile, some of those who were actually left out in the cold by a mismanaged foreclosure process have received only $300.
It results from what critics say was a haphazard and deeply flawed settlement agreement between the bank and regulators. Regulators urged banks to abandon the long and largely fruitless internal reviews meant to identify victims of mismanaged foreclosures. So, banks complied and have issued payouts to borrowers who were in any stage of foreclosure, even if they were not victims of the bank's mismanagement.
To read the full story in the Washington Post, click here.