FRANKFORT, Ky. (WKYT) – Kentucky Attorney General Jack Conway today announced that thousands of Kentuckians may receive payment as part of a national mortgage settlement.

Two million postcard notices have been mailed this week to U.S. homeowners who lost their homes to foreclosure. Notices were mailed on September 17th to approximately 5,395 Kentucky homeowners who were foreclosed upon during the relevant time period, and who are now eligible for payments totaling $10.7 million. Depending upon the number of eligible participants, the amount payable to these borrowers will be up to $2,000 per eligible household.

To be eligible, homeowners must have had loans serviced by Ally/GMAC, Bank of America, Citi Bank, JP Morgan Chase or Wells Fargo and lost their homes either through sheriff sale, short sale or deed in lieu of foreclosure between January 1, 2008 and December 31, 2011.

“In communities across Kentucky and the nation, homeowners affected by the mortgage foreclosure crisis are getting much needed relief as a result of this historic settlement,” General Conway said. “This settlement is about providing second chances for those who have lost their homes or owe more than their homes are worth. If you believe you are eligible for relief under this settlement, please watch for important communications from my office in the coming days and weeks.”

The postcard notice was mailed to the last known address of eligible borrowers based on records obtained from the banks. The postcard will be followed by a letter on Office of the Attorney General letterhead instructing these borrowers how to apply for monetary benefits under the settlement.

A follow-up letter with paperwork to complete will be sent directly to consumers from the Attorney General in October. Homeowners should receive a letter and claim form from the Attorney General by October 19, 2012.

Homeowners who lost their home to foreclosure, short sale or deed in lieu of foreclosure and do not receive this postcard notice and follow up letter, should call a toll free telephone number that has been set up to accept information and provide application forms for payment. The toll free number to contact is 1-866-430-8358. A live operator should be available at this number from 6 a.m. to 6 p.m. daily. Otherwise, a voice message can be left for the administrator. The deadline to make a claim is January 18, 2013.

The Attorney General also warns all homeowners to beware of potential scams that may surface related to this settlement. There is no cost to eligible borrowers to participate in this settlement. If anyone solicits you by telephone, over the Internet or by direct, written solicitation offering to assist you in obtaining a payment under this settlement for a fee, it is a scam and you should report it to the Attorney General’s Office of Consumer Protection at 888-432-9257 option 3.

Moreover, if you receive any solicitation that is not addressed from the Office of the Attorney General, you should not respond to it. This could be an attempt by a scammer to steal your identity or financial information.

For additional information and a list of frequently asked questions, visit the Attorney General’s mortgage foreclosure settlement page.