Last Thursday, President Obama along with other government officials announced a $26 billion mortgage plan to help underwater homeowners and those struggling to make their mortgage payments get back on their feet. The five largest mortgage lending banks will pay out appropriated amounts to the government. That money will then be distributed to the states that have been impacted the most by the housing market crash.
Florida will receive $8.4 billion, the largest payout of the settlement. The payout is intended to help all homeowners, not just those who are underwater on their mortgages and behind on payments. The terms of how the majority of the money will be distributed has been released. However, there is still some deliberation for the remainder of the payout.
• $7.6 billion will be used to aid homeowners who are currently in financial crisis and who are underwater on their mortgages.
• $170 million of the payout will be turned into cash payments for those Floridians who have lost their homes due to foreclosure malpractice from their lenders the past three years. The average cash payout is expected to be approximately $2,000 for each individual homeowner.
• $308 million will go to programs for homeowners who are current on their loan payments, but have higher interest rates due to the housing crisis.
• $350 million will go directly to the State of Florida for currently undisclosed purposes.
Although this will be a huge relief for homeowners in the State of Florida, there is still much criticism of Florida Attorney General Pam Bondi, for a lack of assertion that Florida deserves more than the $8.4 billion payout.
Choosing the right attorney can make the difference between whether or not you can keep your home. A well qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Foreclosure defense attorney, Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.