Federal Reserve Turns to YouTube to Promote Foreclosure Reviews

Did you know there was a free, government-sponsored review of home foreclosures, which included compensation for homeowners who suffered financial harm?

Neither did we.

Nor did many others, for that matter. Only 164,627 borrowers of the 4 million notified by mail requested reviews, the Los Angeles Times reports. In fact, so few borrowers responded to the program, the Federal Reserve is turning to YouTube to help get the word out.

In a PSA video, Anna Alvarez Boyd of the Federal Reserve Board explains (in both English and Spanish) that reviews are available to home owners in any stage of foreclosure proceedings in 2009 and 2010, and are conducted by independent consultants, not the banks.

The program, IndependentForeclosureReview.com, is part of a settlement by big banks with the Fed and the Office of the Comptroller of the Currency (the agency in the Treasury Department that oversees national banks), and is separate from the $25 billion settlement with five big banks that we’ve all heard about.

Over 25 mortgage servicers, bill collectors, and their affiliates are participating in the settlement for errors and misconduct, including “robo-signing” approvals of documents without review.

The filing deadline has been extended to July 31, 2012, so if you or anyone you know have been involved in a foreclosure, get on it!