Over 72,000 Florida residents who lost their home due to a foreclosure during the housing crash between 2008 and 2011 will be receiving a check for $1,480. These checks are the end result of a mortgage settlement that involved five of the largest mortgage lenders in the nation. Homeowners receiving these checks are required to have undergone a foreclosure during the applicable time period and also suffered some form of foreclosure abuse. These abuses included robo-signed mortgage documents.
The $1,480 checks are only part of a $26 billion settlement that was reached between the lenders and the federal government. The checks were expected to be about $600 less, but not all of the Florida residents that qualified for the settlement actually applied for a check. The office of the Attorney General stated that they are not sure why more Florida residents did not request their settlement check.
Many other borrowers received only a $300 settlement, but some may still qualify for the additional $1,480 settlement. The foreclosure-relief settlement is being paid out in waves over different states. A total of $3.4 billion has already been paid out to those foreclosed upon.
During the period of 2008 through 2011 many people were foreclosed upon based on robo-signed documents or false affidavits. Many Florida residents will qualify for settlement checks based on these foreclosures, but this may not be all that they qualify for. A Florida resident who believes that they were the victim of an improperly handled foreclosure can consult a foreclosure attorney to discuss whether their foreclosure was done incorrectly and whether there may be other actions that they can take. Those that underwent foreclosure in Florida should also check to see whether a settlement applies to them, as many people did not apply for the settlement checks that they were due.
Source: Sun Sentinel, “$1,480 checks going out to more than 72,000 foreclosed Floridians“, Donna Gehrke-White, June 06, 2013