1 in 10 foreclosure settlement checks sent to wrong address

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Of the more than 3.9 million checks sent out to borrowers as a result of foreclosure settlements between federal regulators and 13 mortgage servicers, 400,000 have come back as undeliverable because they were sent to the wrong address.

That 10 percent error rate could help explain why checks worth $3.9 billion have been sent out, but only $2.5 billion has been cashed. Some of the checks are worth up to $125,000.

This is not the first problem to arise in the distribution of settlement funds. Some borrowers reported their settlement checks bounced when they tried to cash them, and about 96,000 borrowers received less than they should have received under the settlement.

Source: Huffington Post