UPDATE 1-U.S. regulators extend deadline for foreclosure reviews

WASHINGTON Aug 2 (Reuters) - U.S. regulators said on Thursday they were extending a deadline for homeowners to ask for a review of whether they had been wrongfully foreclosed upon in 2009 or 2010.

As part of an April 2011 settlement with the agencies, 14 mortgage servicers, among them many large banks, are required to hire consultants to review foreclosure actions taken in 2009 and 2010 to see what errors may have occurred.

The program, however, has had trouble getting off the ground, in part because many homeowners do not understand how to participate. A report in July by the Government Accountability Office found some instructions issued on how to participate were complex and lacking in important information.

On Thursday, the Federal Reserve and the Office of the Comptroller of the Currency said they were extending the deadline to Dec. 31. The deadline was previously set for Sept. 30.

"The deadline extension provides more time to increase awareness about the Independent Foreclosure Review and how eligible borrowers may request a review, and to encourage the broadest participation possible," the two regulators said in a joint statement.

Homeowners who were wrongfully foreclosed upon could receive more than $125,000 each from the financial institutions.