SunTrust customers could get cash back in mortgage settlement

More than 2,200 homeowners who had mortgages with SunTrust and lost their homes to foreclosure in recent years are eligible for part of a cash settlement worked out by the North Carolina Attorney General's Office.

Posted 5:31 p.m. Mar 17, 2015 — Updated 5:31 p.m. Mar 17, 2015

RALEIGH, N.C. — More than 2,200 homeowners who had mortgages with SunTrust and lost their homes to foreclosure in recent years are eligible for part of a cash settlement worked out by the North Carolina Attorney General's Office.

SunTrust settled a nationwide wrongful foreclosure lawsuit and is on the hook for more than $550 million in payments. North Carolina's portion of that payout is $21.5 million. SunTrust must also meet tougher mortgage servicing standards designed to prevent future problems for homeowners.

Former homeowners must meet the following criteria:

They were foreclosed on between January 1, 2008, and December 31, 2013.
Their mortgage was serviced by SunTrust at the time of foreclosure.
They made at least three payments on the loan.
They either lived in the home or intended to live in the home at the time they took out the mortgage.
The mortgage was for a property with at least one and no more than four residential units.
The unpaid principal of their first mortgage was within certain limits.

Claims forms were mailed this week, and homeowners have until June 4 to submit a claim. The average payment will be around $850, according to Attorney General Roy Cooper.

Consumers can contact the settlement administrator to obtain paperwork or ask questions at 1-866-590-8532 or settlementadministrator@nationalSunTrustsettlement.com.

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