According to Bloomberg, Florida has the highest percentage of troubled mortgages in the country. The recent settlement reached between 49 states and five of the largest U.S. mortgage servicers will provide much needed relief to the state, but how much impact that relief will have on the overall housing market is still open to debate.
The deal requires the banks to pay $20 billion in mortgage relief and $5 billion to state and federal governments. This could mean as much as $8.4 billion in benefits will go to Florida homeowners.
Despite Florida Attorney General Pam Bondi’s assertion that the deal was a historic win, interviews around the state revealed anger among homeowners stuck in foreclosures that last longer than in any other state.
“They say it’s a lot of money, but is it?” said Richard Thompson, a 51-year-old real-estate agent. “You wonder if this is just P.R. or if it’s going to help genuine people stay in their home and help stabilize the market.”
A portion of the money will go to help refinance loans for those who owe more than their homes are worth. Floridians foreclosed on between Jan. 1, 2008, and Dec. 31, 2011 can expect to receive around $2,000 each.
Sarelson Law Firm – Miami litigation attorneys