For homeowners struggling to make their monthly mortgage payments, the risk of foreclosure always looms large. After the recent recession, many in Florida made strides toward avoiding home foreclosure, but still found themselves at the mercy of the banks. Some sought options such as loan modifications or debt relief programs, but a significant number still lost their homes in foreclosure. Now, some of those homeowners may be seeing some restitution in the form of a check.
The checks may come as part of a national settlement with multiple major mortgage service providers, including Bank of America, Wells Fargo and others. The total of the national settlement to be dispersed to homeowners nationwide is $25 billion. That settlement was reached in 2012.
Florida homeowners are expected to see a total of $2.5 million. So far, the settlement has resulted in 74,000 homeowners in Florida receiving around $109.5 million. In this round of settlement checks set to be mailed out, an estimated 1,700 Florida homeowners will get a check for $1,480.
For those in Florida who have been able to retain their homes in the face of continuing financial hardship, it may be time to research options to ease the current level of pressure. In some cases, seeking a loan modification may be the best course of action in avoiding home foreclosure. For others, filing for personal bankruptcy can help avoid or stop a foreclosure, and can give homeowners the breathing room needed to restructure their finances and move forward to a more secure financial future. The most important thing to remember is that there are always options available, as well as help in choosing the best path forward.
Source: bizjournals.com, National mortgage settlement: ‘The check is in the mail’, No author, Jan. 27, 2014