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Florida foreclosure settlement to help with loan modifications

On Behalf of | Jan 12, 2013 | Firm News, Loan Modification vs. Bankruptcy

The Florida legislature is in the process of deciding how to divide up the $60 million in aid it will provide for troubled homeowners. Most of the money will go towards assisting homeowners having problems making down payments on their loans.

This was all a part of a much larger settlement by a number of nationally known banks that were accused of foreclosing on homeowners with faulty paperwork. There has been debate among the legislators and Florida’s Attorney General’s office ever since the settlement was made as to how the money could be best spent, but at least a portion of it is designed to go to homeowners to assist in loan modifications and to reduce principal on the loans.

Homeowners that find themselves in financial difficulties may benefit from the advice of attorneys experienced at working with banks regarding various loan modifications, and that have represented homeowners in court to protect against home foreclosure. These professionals can protect homeowners from losing their residences due to incomplete or misleading documents prepared by bank employees. These same attorneys can also assist homeowners in taking advantage of programs like the one mentioned above to help ease their financial burden.

Many individuals have been in the process of losing their homes since the economic downturn occurred back in 2007, but it also now that banks have greatly been at fault for what has happened as well. The banks have been accused of using “robo-signers” (bank employees that sign legal documents and affidavits without taking the time to review if the information contained is correct) that file foreclosure paperwork through the courts.

Legislators and the courts are becoming more sympathetic to the plight of homeowners. And that banks are settling these matters in multibillion dollar settlements demonstrates the precarious legal position banks are now finding themselves in.

Source: The Current, “Lawmakers to disburse part of foreclosure settlement funds next week,” by Gray Rohrer, Jan. 10, 2013

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