How the Mortgages and Foreclosure Investigation Settlement Will Benefit Floridians
A recent settlement of $32 billion in total dollar value and $25 billion in credits will provide some benefit to Floridians. The state is expecting to receive $8 billion in total dollar value and at least $4 billion in credits. This stems from the shaky mortgage practices of 5 large banks in our nation. Victims of foreclosures in Fort Lauderdale, Miami-Dade, Palm Beach and other areas throughout Florida that were part of the robo-signing scandal may find some financial relief.
Benefits of Settlement to Florida homeowners
The state of Florida was one of the hardest hit in the robo-signing scandal. This involved the practice of banks signing off on foreclosures without having all of the paperwork in order.
It means that some foreclosures may have been illegally done, and other ones may not have even been necessary. This has resulted in the loss of thousands of homes and investment properties. If you have reason to believe that you were a victim, speak with a Fort Lauderdale mortgage foreclosure attorney to get a thorough understanding of your rights.
One of the benefits for Floridians is that they have a guaranteed $4 billion settlement from 3 of the involved banks. Florida is 1 of just 2 states that have been able to negotiate this. If the banks fail to follow through on this particular settlement, they will face serious penalties.
At least $3.1 billion of the settlement is allotted for Florida homeowners who are in serious financial trouble. It will allow for loan modifications that may include money in forbearance being forgiven, principal loan balances being reduced and the provision of other types of loss mitigation.
About $334 million of the settlement will help fund foreclosure and other housing-related prevention programs. Taking steps to make sure a problem of this magnitude never happens in Florida again is vital.
In order to provide some financial help to those Floridians whose principal balance is greater than the market value of their home, $309 million is allotted. However, there are requirements that must be met in order to qualify.
Homeowners will be eligible for refinancing only if:
- their interest rate is higher than 5.25%;
- the value of their loan is greater than the market value; and
- mortgage payments are current.
Those who are eligible should expect to receive something in the mail about the program, or you can contact your bank.Another benefit is that about $171 million will be available to Floridians whose homes have been lost through foreclosure. It is intended to provide partial compensation for the loss suffered.
Payments will range between $1,800 and $2,000. There are qualifications that must be met, such as the homeowner’s loan must have been with one of the 5 banks included in the settlement. It will require an application to be filled out, and you must go through a screening process.
The good news is that even if you qualify, you may still be entitled to additional compensation through the ongoing Office of the Comptroller of the Currency review process. Depending on the circumstances, any settlement reached through this may be reduced by the amount you received as partial compensation.
Contacting a Fort Lauderdale Mortgage Foreclosure Attorney
If your home was foreclosed on due to the fraudulent practices of the banks involved in the settlement, or if you are facing a foreclosure now and would like to know if you are able to save your home or investment property, contact a Fort Lauderdale mortgage foreclosure attorney as soon as possible.
An attorney at The Neustein Law Group, P.A. may be able to help. We serve residents of Miami-Dade County, Broward County, Palm Beach County and other areas throughout the state of Florida. For a better understanding of your rights and how the settlement in Florida may specifically impact you, contact us today – (954)-606-0747 (Fort Lauderdale) , (888)400-ATTY (2889) (Toll Free) or (305)531-2545 (Direct).