If you recently received a letter and check from Rust Consulting, Inc., purporting to be either a payment under a recent foreclosure settlement agreement or asking for additional contact information so they can make such a payment to you, DO NOT ignore or destroy it. This may well be a legitimate payment under a recent Federal foreclosure settlement agreement.
In January 2013, thirteen different mortgage servicing companies that were subject to enforcement actions for deficient practices in loan servicing or foreclosure processing reached an agreement with the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System to provide more than $9.3 billion in cash payments and other assistance to borrowers impacted by their actions. This settlement included money for direct cash payments to qualifying borrowers and those payments are now underway. Each Borrower whose mortgage loan was serviced by one of the thirteen participating servicers and who were involved in a foreclosure action on their primary residence between January 1, 2009, and December 31, 2010, are scheduled to receive compensation. Rust Consulting, Inc., is the company retained to administer the payments to qualifying borrowers on behalf of the servicers.
Significantly, accepting a payment under this settlement does not prevent a borrower from pursuing any other remedy they might have relating to their foreclosure. Servicers are not permitted to ask borrowers to sign a waiver of their legal claims as a condition of receiving a settlement payment.
If you would like more information regarding these payments or want to verify whether or not you are covered by the agreement, call Rust Consulting, Inc. at 1-888-952-9105, or visit this website.
Of course, as always, beware of scams, including without limitation companies that ask you to either call a different number for information or verification or ask you to pay them a fee in order to receive payment under the agreement.
If you have any other questions regarding foreclosures or foreclosure defense and alternatives, contact a real estate attorney.