Bank reaches $1.5 million settlement after foreclosures

HARTFORD, Conn. (WTNH) -- There is some relief for Connecticut homeowners who lost their homes through foreclosure. The state has announced a big settlement with five of the nation's largest banks will soon be in the mail.

It's about those big banks that lied to the court about having the proper foreclosure documents, and those cases where they used 'robo-signing.'

The settlement, negotiated by 49 of the nation's attorney generals, has earmarked $1.5 billion for 1.75 million borrowers that lost their homes. In Connecticut, it's about 9,000 borrowers that had foreclosed mortgages with Ally/GMAC, Bank of America, Citi, JPMorganChase, and Wells Fargo.

"If everyone in the country were to participate in the program, which is, of course, not going to happen, each homeowner would receive about $840," said Attorney General George Jepsen. "If there's a 50 percent participation rate, which is what's broadly expected, the amount paid would be in excess of $1,500."

Jepsen says post cards and application kits are going out in the mail between now and October 12th. The application is fairly simple and can also be done online.

If you do not receive the mailer, but think you may qualify visit http://www.nationalmortgagesettlement.com or contact administrator@nationalmortgagesettlement.com .