Pam Bondi: Foreclosure victim relief available

February 3, 2013|By Pam Bondi

Florida was one of the hardest hit states when the real estate bubble burst, sending thousands of homes into foreclosure and creating backlogs in the court system. My office, along with the Department of Justice, 48 other attorneys general, and the District of Columbia, investigated five of the nation’s largest mortgage servicers, Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo, for allegations of foreclosure-related misconduct.

The alleged misconduct included false affidavits submitted in foreclosure proceedings, lost paperwork, long delays and missed deadlines for loan modifications, and so-called “robo-signing,” where the banks submitted foreclosure documents that were not properly signed.

Resolving the investigation, in March 2012, I announced a $25 billion settlement that is providing more than $8 billion in relief to Floridians and has reformed the mortgage industry.

Floridians are already seeing significant relief under the settlement, receiving more than $7 billion in total benefits from loan modifications, including principal reductions, refinancing of underwater loans, and other direct relief. According to the Monitor’s Interim Report released this fall, the five mortgage servicers have reported providing more than $3.6 billion in borrower relief to approximately 50,000 Floridians as of Sept. 30th.

Approximately $170 million is also currently available for cash payments to borrowers who lost their homes to foreclosure between Jan. 1, 2008 and Dec. 31, 2011 and who had their loans serviced by the five banks. The deadline for submitting claims for this money was Jan. 18, but the claims administrator is still accepting properly completed claim forms through Feb.r 15.

I urge anyone who may be eligible and who has not yet filed a claim to file one immediately. Only properly completed claims forms are being accepted. If you believe you may be eligible, please contact the National Mortgage Settlement Administrator at 1-866-430-8358 or visit NationalMortgageSettlement.com.

I am continuing to protect the interests of Florida’s homeowners in other ways. Just last week, my proposal to spend $60 million in settlement funds on foreclosure-related and housing-related services was approved by the Legislative Budget Commission. The proposal included: $35 million for down payment assistance; $10 million for housing counseling; $5 million to the state’s courts to help with foreclosure-related issues; $5 million to help fund legal aid programs; and $5 million to reimburse this office for investigative costs and to support my office’s continuing efforts to remedy abuses in the foreclosure process.

Senate President Don Gaetz, House Speaker Will Weatherford, and I have also announced our joint support for the appropriation of the remaining $200 million of Florida’s settlement monies during the legislative session for housing-related purposes. Possible uses of these funds could include foreclosure prevention, neighborhood revitalization, affordable housing, homebuyer or renter assistance, legal assistance, counseling and other housing-related programs.

This settlement established higher standards for mortgage servicers, provides necessary relief to help homeowners stay in their homes, and offsets some of the harmful effects of the foreclosure crisis.

It is important that Floridians take advantage of the benefits afforded under the agreement. Florida was one of the hardest hit states in the foreclosure crisis, and there is now substantial relief available.

Pam Bondi is Florida Attorney General