Last week the Attorneys General from all 50 states presented their proposed settlement to the 5 largest mortgage servicers, Bank of America, Wells Fargo; J.P. Morgan Chase; Citigroup and GMAC/Ally, in order to settle the widespread claims of foreclosure misconduct that arose late in 2010. The proposed settlement addresses 5 major areas of concern: loan modifications, foreclosure proceedings during loan modifications, standards of conduct for mortgage servicers, fee restrictions and servicer contact.
The Attorneys General have requested a substantial increase in the amount of loan modifications that include a reduction in the principle amounts of the loans, a move which lenders have been strongly opposed to in the past. Also included in the settlement proposal is the requirement that lenders do not initiate a new foreclosure, or continue to pursue a pending foreclosure while a homeowner is being considered for a mortgage modification. The settlement also addresses one of the most frequent complaints about lenders, they would be required to provide a single point of contact for homeowners who are facing potential foreclosure. Standards of Conduct would also be put in place for lenders in order to avoid improper foreclosure practices, such as "robo-signing", as well as limits on the amount of fees and costs that lenders will be allowed to charge when a homeowner defaults on their mortgage.
This settlement proposal from the Attorneys General goes a long way toward addressing many of the most common complaints and concerns of struggling homeowners, but will the lenders accept it and does it go far enough? That is a question that can only be answered with time. If you are facing a Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Lawyer or a Florida Foreclosure Lawyer today to see what foreclosure alternatives may be available to you.
