Florida gets $8.4 billion in national foreclosure settlement
by Dara Kam | February 9th, 2012Florida will get $8.4 billion of a $26 billion nationwide foreclosure settlement reached following what U.S. Attorney General Eric Holder called “disturbing practices” at the country’s biggest banks.
Florida Attorney General Pam Bondi, a top negotiator for the states involved in the lawsuit, said prosecutors and banks had reached a deal that “provides Floridians with much-needed relief and reforms the mortgage-servicing industry.”
Under the agreement:
* Florida borrowers will receive an estimated $7.6 billion in benefits from loan modifications, including principal reduction and other debt relief.
* About $170 million will be available for cash payments to Florida borrowers who lost their home to foreclosure from Jan. 1, 2008 through Dec. 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.
“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,” Bondi said in a statement this morning. “This agreement holds banks accountable and puts in place new protections for
homeowners in the form of strict mortgage servicing standards.”
Read more from The Palm Beach Post‘s Kimberly Miller here.
Tags: Eric Holder, foreclosure, Pam Bondi
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February 9th, 2012 at 11:54 am
Those affected in FL willbe lucky if they ever see a dime of this money.
February 9th, 2012 at 12:48 pm
We had to walk away from our condo because we did not get refinanced and could not keep up with the payments and association fees. Since then we’ve been paying monthly in an apartment. I will be pissed if the people who aren’t paying their mortgages but remained in their homes RENT FREE for a year or two (living it up), get a dime!
February 9th, 2012 at 1:06 pm
Can someone please explain why an 8.4 BILLION DOLLAR settlement will only net the affected homes between $1000 and $2000 dollars????
How many homes @ $2000 each does it take to equal $8.4 billion?????
Something SMELLS rotten in FLORIDA STATE GOVT.
February 9th, 2012 at 3:33 pm
to Huh?
Your straight answer is 4.2M homes. The more complicated answer is that you’re not understanding the numbers correctly. The $2k number you’re probably referring to is out of the $170M designated for already foreclosed-upon homes.
The affected homes NOT foreclosed yet will be splitting the $6.7B of FLs money via loan modifications.
That’s not to say that I disagree with your point that a ton of it will surely end up in the wrong place anyway…
February 9th, 2012 at 5:38 pm
What if my lender whould not even tell me who they were. I was told that was confidential, that was probably a red flag.
February 9th, 2012 at 5:39 pm
Who took over Taylor Bean and Whitiker when they went under?