Borrower Furious With Small Foreclosure Settlement Check

ELK GROVE (CBS13) — Dexter Vernon is one of more than 3 million borrowers to get a portion of a multi-billion foreclosure settlement. He thought it would be enough to help him rebuild his dreams.

What he found in the envelope instead was disappointment.

"I got a $500 check."

He calls it a scam, a joke and a farce. The apology in the form of the $500 check is just another slap in the face by his bank.

"It's just frustrating. I mean you can't fight them, because you're not big enough to fight them, and they just play that little game."

Earlier this year, Dexter, like millions of others, learned they would get money from banks that wrongfully took their homes.

"We were thinking maybe we can get our credit back up."

The settlement means 13 banks will send $3.6 billion to borrowers.

The largest checks, $125,000, will go to more than 1,000 military members, including 53 homeowners who never missed a payment. Checks between $12,000 and $24,000 will go to more than 800 of those foreclosed upon.

But the largest group of struggling homeowners—more than 2 million people, including Dexter—will get $300 to $600.

"I don't want freebies, but I wanted to be treated honestly and fairly."

He thought the settlement check would be enough to try and start over again. But he says he doesn't know if he'll ever be able to buy another home again.

"It's just a nightmare, just a nightmare for an honest working person that goes out every day and work and try to make an honest living. it's just hard on you."

The settlement is separate from the $25 billion national mortgage settlement. Those checks will start going out this summer.