Florida Homeowners To Benefit From National Mortgage Settlement

December 20, 2012 (Press-News.org) Florida homeowners to benefit from national mortgage settlement

A $25 billion settlement has been reached between 49 states and the nation's five largest banks, which will help homeowners across the country with loan reductions, refinancing and cash payments for those who lost their homes between 2008 and 2011 due to fraudulent bank practices. The settlement is likely to affect tens of thousands of Sunshine State residents.

How Florida's share of the settlement money will be distributed

Florida will receive $8.4 billion of the $25 billion national award. This is the second-largest share of the settlement, with California receiving the largest piece of the pie. The majority of Florida's money, about $7.6 billion, will go to homeowners in the form of loan modifications, short sales, principal reductions and moving assistance. Another $309 million will be available to homeowners in the form of refinanced mortgages and another $170 million in cash payments will go to homeowners who were unfairly foreclosed upon between 2008 and 2011. These payments will average $1,500 to $2,000 per homeowner.

However, homeowners are not the only beneficiaries of Florida's share of the national mortgage settlement. The state will also receive a $350 million cash payment. The banks have the responsibility to inform homeowners they are eligible for an award under the settlement, but homeowners may also contact the banks for more information.

The national mortgage settlement

The national mortgage settlement was reached between 49 states and the nation's five largest banks: Citigroup, Wells Fargo, Bank of America, JPMorgan Chase and Ally Financial. Only Oklahoma declined to participate.

The $25 billion settlement in total includes funds for mortgage refinancing, loan modifications, principal write-downs and cash payments for homeowners. Banks have three years to fulfill the stipulations of the settlement and will be fined if they do not meet 75 percent of their targets within two years. The settlement does not grant immunity to the banks from civil litigation from individuals or class action suits or from future criminal charges.

The deadline to file a claim with the national mortgage settlement is January 18, 2013, so homeowners should act soon if they believe they qualify. The National Mortgage Settlement Administrator sent letters to eligible homeowners this fall, including those who lost their homes between 2008 and 2011.

In addition to the national mortgage settlement, another $1 billion will be awarded to involved homeowners in a settlement with Bank of America and Countrywide for fraudulent loan practices.

The national mortgage settlement and Florida's share of the award is only one of what may be many settlements between homeowners and banks for abusive foreclosure practices. If you believe a bank's fraudulent practices led to your foreclosure or to learn more about how bankruptcy could prevent your home from being foreclosed upon, please contact an experienced bankruptcy attorney.

Article provided by B&B Law Group
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