We are getting reports from the trenches that the foreclosure settlement checks that were mailed out Friday to harmed homeowners are bouncing. Other reports are coming in that there are insufficient funds to cash. We would assume what is happening, if at all, is the latter since it takes time for a check to clear, or not.
We have not been able to confirm as of yet but will post results as soon as we get them.
If you had your check denied for insufficient funds or any other information regarding the cashing/depositing of the checks email us at info@4closureFraud.org
A quick Google search shows that Rust Consulting has had issues with this in the past…
Nearly 600 Michigan homeowners who were owed their share of a $27.5-million class action are angry that the checks bounced, leaving a trail of fees and frustration.
Rob Lalain, 34, of Novi was one of the plaintiffs and said his check for $635.34 dated Sept. 5 bounced. He was hit with a $10 bad-check fee.
“It’s pretty damn weird. It is a $27-million lawsuit, and they are sending out bad checks,” Lalain said.
Lalain is one of the more than 66,000 new-home buyers in Michigan who won the settlement after they were overcharged for title insurance while home builders got discounts. The arrangement violated federal law.
The settlement, approved in February, applied to people who bought newly built homesbetween December 1998 and July 2005 and purchased title insurance from Chicago Title Insurance Co. of Missouri, Transnation Title Insurance Co. of Arizona, First American Title Insurance Co. of California or Lawyer’s Title Insurance Corp. of Virginia.
The problem was caused by an error by U.S. Bank of Minneapolis, he said. Yellen said he hired Rust Consulting of Minneapolis to handle the payout to plaintiffs in the class action. Rust then arranged for U.S. Bank to accept the funds from the defendants and handle the check processing to the class members.
Rust Consulting declined to comment Wednesday, and a U.S. Bank spokeswoman said she had no information on the matter.
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