Mortgage Foreclosure Settlement for Florida Homeowners

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The State of Florida today entered into a $25 billion joint federal-state agreement with the nation’s five largest mortgage servicers over foreclosure abuses and unacceptable nationwide mortgage servicing practices, according to a news release issued by Florida Attorney General Pam Bondi.

The  five banks covered in the agreement are Ally Financial Inc., Bank of America Corp., Citigroup Inc., J.P. Morgan Chase & Co. and Wells Fargo & Co. Together, the five firms handle payments on 55% of all home loans outstanding, or about 27 million mortgages, according to Inside Mortgage Finance.

Florida’s share of the total monetary benefits under the settlement is approximately $8.4 billion, according to Attorney General Bondi. Highlights include:

  • Florida borrowers will receive an estimated $7.6 billion in benefits from loan modifications, including principal reduction, and other direct relief.
  • Approximately $170 million will be available for cash payments to Florida borrowers who lost their home to foreclosure from January 1, 2008 through December 31, 2011 and suffered servicing abuse.
  • The value of refinanced loans to Florida’s underwater borrowers would be an estimated $ 309 million.
  • The state will receive a direct payment of $ 350 million.

In addition to the terms of the national settlement agreement, Attorney General Bondi separately negotiated an agreement with the nation’s three largest mortgage servicers to ensure that a guaranteed portion of the overall settlement funds goes to Florida borrowers.

The agreement does not prevent homeowners or investors from pursuing individual, institutional or class action civil cases against the five mortgage servicers.

Fort Lauderdale mortgage foreclosure defense attorneys Marcy Resnik and Howard Kahn are available to answer your questions about what this landmark agreement means to you. If your home is underwater or you are in foreclosure on your mortgage, call us at 954-321-0176 or Contact Us online.

Read the full release titled: Florida Enters $25 Billion Joint State-Federal Mortgage Servicing Settlement.