Florida homeowners fall through cracks in nationwide mortgage settlement
About 1,000 Floridians have filed complaints in recent months against the top lenders who pledged earlier this year to work with “underwater” homeowners as part of a national legal settlement of unscrupulous lending practices.
A multistate deal hatched by state and federal leaders in February was supposed to force the country’s five largest lenders to lower interest rates, reduce principal or even offer cash to struggling mortgage customers.
But the fine print has left many customers of those lending giants frustrated. The breakdown of the Florida complaints filed against the five lenders who participated in the settlement: Bank of America, 39 percent; Wells Fargo, 28 percent; JPMorgan Chase, 20 percent; Citi, 9 percent; and Ally/GMAC, 4 percent, according to records supplied to the Orlando Sentinel by the Florida Attorney General’s Office.
One of the complainants is Eric Larson, owner of a downtown Orlando condominium, who objects to the settlement not requiring a bank to work with an “underwater” mortgage customer — one whose property is now worth less than the loan — unless the lender not only services the mortgage but also owns it.
“We didn’t know the stipulations in the settlement — the Wells Fargo ‘protections,’¿” Larson said. “In order to qualify for a refinance, the loan has to be owned and serviced by Wells. But none of these lenders own these loans — they securitized them. They make it sound like if you’re current on your payments, they will refinance. It sounds really great, but in reality, it’s not happening.”
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Part of this settlement should go to homeowners to hire a good attorney and sue the bank. When is Bondi going to release the money??? She is still thinking about what to do with it???
I BOUGHT MY TOWNHO– USE FOR 160,000.00 NOW I STILL OWE THE BANK 130,000.00 ALL THE TOWNHO– USES ARE FORECLOSING. MY HO– USE IS WORTH 60,900.00 I CALLED ABOUT THE NATIONAL MORTGAGE SETTLEMENT AND I AM TOLD I DO NOT QUALIFY. THIS IS A JOKE THEY CAN KEEP THE PIECE OF SHIT HO– USE. I WILL TAKE WITH ME EVERY SINGLE ITEM I PUT INTO IT. INCLUDING WINDOWS AND DOORS. I WILL LIVE HERE RENT FREE UNTIL ITS TIME TO GO.
What do you expect from this bleached blond idiot…she and her boss, the governor who took the fifth amendment dozens of times when he allegedly stole millions from HCA healthcare, are “bank bought”.
There is only one answer…reduction of principal by the banksters for homeowners, both current on their loans and those in default. The banks have stolen billions over the last 20 years…it’s the only way to get this industry going again.
Problem there, Rich, is that most of the mortgages were sold and bundled and converted into securities. They are now owned by investors (pension funds, fannie, freddie, etc.). The lender(s) don’t own the mortgages & notes any longer so how can they grant a principal reduction? It would mean taking a huge loss (not for the banks) but for those that participated in the securitization. I don’t know of any law than can do that except maybe an executive order from the President. Don’t count on the court system to salvage any of this – it’s as corrupt, bought and paid for by the same banking institutions who paid through campaign contributions to get them there. Do remember who is contributing to the campaign for those running for (and already in) the presidency! My personal opinion is to shut down the Fed Reserve Bank, seize all of it’s members assets and then distribute them to homeowner’s as a pay-out to the investors in these securitizations thereby reducing the principal balance on the loans secured…but doubtful that will ever happen.