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South Floridians To Receive $2k In Landmark Settlement

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south floridians to receive $2k in landmark settlement national mortgage settlement administrator

Foreclosed South Floridian homeowners are expected to receive at least $2,000 in a landmark settlement involving five major U.S. banks.

By Carlo Calma

An estimated 167,000 Florida residents who lost their home to foreclosure may each get about $2,000 as part of a historic joint state-federal settlement with the country’s five largest mortgage companies, as reported by the Sun-Sentinel.

Residents who borrowed from Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo can expect a check in early 2013, but must file their claims to their lender by Jan. 18. The settlement covers those who lost their home to foreclosure between Jan. 1, 2008 and Dec. 31, 2011. 

According to the National Mortgage Settlement Administrator, the settlement will provide as much as $25 billion in relief to distressed borrowers, and direct payments to states and the federal government.

The settlement comes after state and federal investigations found that, “the country’s five largest mortgage servicers routinely signed foreclosure-related documents outside the presence of a notary public, and without really knowing whether the facts they contained were correct,” according to the National Mortgage Settlement.

$1.5 billion from the $25 billion settlement will go directly to foreclosed homeowners, which the administrator estimates to be about 750,000 borrowers nationwide. On a more localized level, the Sun-Sentinal is reporting that the state is expected to get about $334 million, which will benefit about 167,000 borrowers.

Despite the settlement, some analysts are saying that the $2,000 doesn’t even begin to cover the damages homeowners faced in the foreclosure crisis. In the Sun-Sentinal article, Jack McCabe, a Florida real estate analyst, shared the sentiment.

“It’s like pocket change,” said McCabe. “Some homeowners, for example, lost tens of thousands of dollars in home equity when they were foreclosed on.”

The National Mortgage Settlement Administrator, as well as the five major banks, have already begun to send out notifications regarding the settlement, and forms to affected borrowers.

To find out if you’re qualified to receive a portion of the settlement, call the National Mortgage Settlement Administrator at 1-866-430-8358, or visit http://www.nationalmortgagesettlement.com

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