Florida foreclosure victims have until Jan. 18 to seek damages from five mortgage companies. A claim must be filed by next week for homeowners who lost their homes to foreclosure to receive settlement money.
In February 2012, 49 state attorneys general and the federal government announced a historic joint state-federal settlement with the country’s five largest mortgage servicers:
The settlement provides as much as $25 billion in relief to distressed borrowers and direct payments to states and the federal government. It’s the largest multistate settlement since the Tobacco Settlement in 1998.
Borrowers who had their mortgages serviced by Bank of America, Ally/GMAC, Citi, JPMorgan Chase or Wells Fargo & Co. may qualify for part of a $25 billion settlement reached early last year by those companies and attorneys general throughout the country.
Only borrowers who were foreclosed on between Jan. 1, 2008, and Dec. 31, 2011, can qualify.
“It has to be brought to the attention of the people of Florida. The money is there and belongs to the people of Florida,” said Davenport homeowner Moe Chaoudi, who filed his claim months ago. “If these people are homeless or living in hotels or out-of-state, how are they going to reach these people?”
In Florida, approximately $170 million is available for cash payments to Florida borrowers. Attorney General Pam Bondi said she has mailed notices to Floridians who may qualify for settlement funds, but few of those people have submitted claims.
“Approximately two-thirds of the people to whom notices have been sent have not filed claims. It is imperative that those who may be eligible for cash payments under the settlement submit their claims by the Jan. 18 deadline,” Bondi stated recently.
The five mortgage servicers agreed to pay out the funds after being accused of illegally processing and signing some foreclosure-related documents. The civil-law enforcement action also accused the servicers of allowing widespread errors and abuses to exist in their foreclosure processes.
For those who do qualify for part of the settlement, checks are supposed to be mailed in mid-2013, according to Bondi’s office.
Details can be found online at http://www.NationalMortgageSettlement.com or email@example.com, or by calling 1-866-430-8358.