Florida to Get $8.4 Billion from Foreclosure Settlement
Florida borrowers will receive an estimated $7.6 billion in benefits from loan modifications, including principal reduction, and other direct relief.
Palm Coast, FL – February 10, 2012 – Attorney General Bondi formally entered a landmark $25 billion joint federal-state agreement with the nation’s five largest mortgage servicers over foreclosure abuses and unacceptable nationwide mortgage servicing practices. The proposed agreement provides an estimated $8.4 billion in relief to Florida homeowners and addresses future mortgage loan servicing practices. The settlement generally releases civil claims related to robo-signing, other foreclosure-related abuses, and loan origination misconduct, but it provides no release of criminal claims or of claims related to mortgage securitization.
"This settlement will provide substantial relief to struggling Florida homeowners, and ensures that our state gets its fair share of the relief being provided nationally," stated Attorney General Pam Bondi. "This agreement holds banks accountable and puts in place new protections for homeowners in the form of strict mortgage servicing standards."
Florida’s share of the total monetary benefits under the settlement is approximately $8.4 billion.
- 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.
Where do I sign up LOL
"This settlement will provide substantial relief to struggling Florida homeowners, and ensures that our state gets its fair share of the relief being provided nationally," Give me a brake. Some home owners are going to get $1,500 to $2,000 cash settlement for mishandled foreclosures and give up any future suits. Or you may get to refinance your home with a reduction of $20,000 at a little above 5% Wow about a savings of $93 per month on your payment. I am sure that that is not going to help a person stay in a house that has a payment of $1,200 to $1,500. if you qualify and fill out all the paper work involved. This is letting the Banks out cheap and not ready helping the Home Owners. This is no better than whats been going on and they have 3 years to put it in action.