“A very positive step” is how Tampa foreclosure attorney Richard McIntyre describes the landmark $25 billion dollar mortgage settlement with the nation’s top banks.
Florida Attorney General Pam Bondi had entered into the agreement which provides an estimated $8.4 billion dollars in relief to homeowners here in the state. The Joint federal-state agreement on behalf of 49 states requires five major financial institutions to fund the relief which will come in the form of principal reductions, mortgage refinancing, loan modifications and cash payments for those who lost their homes.
McIntyre heads up an 18-lawyer firm focusing on debtors, foreclosures and insolvency issues.
“This deal has the potential to break through the gridlock gripping the housing and mortgage industries and gives homeowners the opportunity for some relief,” McIntyre said. “Principal reductions are the key. If mortgage balances are reduced to fair market value in distress situations, homeowners will be able to afford to keep their homes, or sell them for reasonable prices without resorting to foreclosures or short sales.”
In return, the banks, Bank of America, JPMorgan Chase, Wells Fargo, Ally Financial and Citigroup are released from prosecution for civil charges for robo-signing, other foreclosure-related abuses and loan origination misconduct.
Florida borrowers will receive an estimated $7.6 billion in benefits from loan modifications, including principal reduction and other direct relief. Millions more will be available for cash payments for Florida borrowers who lost their homes to foreclosure from January 1 2008 through December 31st, 2011 and suffered servicing abuse.
“The important point here is that the banks are now going to have to pay attention and fix the problems that they caused,” said Consumer Lawyer Eric Seidel.“ I’ve heard for years from consumers who couldn’t get their lenders to give them the time of day when they called to try to get all the mortgage help that was supposed to be available. Money is what talks if you’re serious about helping these folks– this is long overdue.”
The deal requires the banks to reduce loans for about 1 million households at risk of foreclosure in addition to other relief. The exact guidelines have not yet been set, so Seidel’s advice for homeowners? “My best advice is to seek out representation from a reputable foreclosure lawyer you trust.”
FOR MORE INFORMATION:
Eric Seidel
Phone: 813.899.6059
www.mcintyrefirm.com
SOURCE: McIntyre, Panzarella, Thanasides, et al
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