Many banks and institutions have come under fire for their actions or lack of action during the recession that hit the housing market terribly. As the economic outlook improves, investigations into institutions that touted plans to help Florida homeowners who were looking for ways to continue avoiding home foreclosure have resulted in settlements and revamping the way foreclosures are handled. One institution that has recently come under fire in Florida is SunTrust Bank.
The bank was accused of mismanaging and conducting faulty bank mortgages. The Federal Reserve found the bank was guilty of conducting what it deemed as unsafe and unsound practices when it came to loans and foreclosure services. They have also been ordered to pays claims to other government agencies.
SunTrust has agreed to fork over more than $1.56 billion in settlements. $500 million will go towards relief for consumers in the way of debt forgiveness and loan modifications. Another $468 million will go toward dealing with claims filed by both the Housing and Urban Development Department and also the U.S. Justice Department.
SunTrust is listed as the third largest institution of its kind in Florida. The amount of the settlements may help many homeowners who trusted in the practices and the knowledge of the financial giant. Any homeowner in Florida may want to inquire as to the standing and the legality of any program a financial institution may recommend. It can be difficult for homeowners in the midst of avoiding home foreclosure to keep track of the facts and varieties of ways in which they may be able to keep their home or pursue a better way to move on. For some, bankruptcy protection may be one good option to help them avoid foreclosure.
Source: HeraldTribune.com, SunTrust to pay $1.5 billion to settle mortgage claims, John Hielscher, Oct. 11, 2013