Lost a House? Get a Check!

This just in… Goldman Sachs and Morgan Stanley announced they will be sending $247 million in payments to a quarter-million people. Sounds like 250,000 people will be getting almost a $1,000 apiece as an, “I’m sorry” for their foreclosed home.
These two Wall Street powerhouses are the last of the 13 mortgage servicers to begin making payments to borrowers whose homes were in foreclosure proceedings in 2009 and 2010.

The servicers, who include Wells Fargo and JP Morgan Chase, agreed to pay $3.6 billion to more than 4.2 million borrowers in a settlement reached in January. All other servicers began making payments on April 12, leaving Goldman Sachs and Morgan Stanley trailing behind in the process.

If recent history is any guide, checks will range from $300 to more than $125,000 and will be made by mid-July. Borrowers who were eligible for payments have already received notification postcards from Rust Consulting Inc., the company in charge of handling the payments.

As of Friday, around 1.2 million checks with a combined value of about $1.2 billion had been cashed or deposited in homeowners’ accounts.

Do you feel justice has been served? Does a check for $300 make up for a foreclosure? Does this sound like justice or the cost of doing business to you?

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