In another turn in the settlement talks going on between federal regulators and the five largest mortgage servicers over foreclosure abuses including allegations of "robo-signing", the two sides are negotiating a potential "cash for keys" program for delinquent borrowers. The program would pay homeowners who are at least 90 days behind on their mortgage payments $1,000 to seek independent financial advice and up to $20,000 as a fresh start payment toward the costs of a new home.
The program would require homeowners to vacate their homes quickly and to leave them in good condition. Along with the "big 5" mortgage servicers, there has been talk that federal mortgage giants Fannie Mae and Freddie Mac would be included as a part of the new "cash for keys" program. Rumors coming out of the meeting stated that the proposal was "rejected strongly" by bank officials.
A federally mandated and servicer approved cash for keys program would be a major help for thousands if not millions of struggling homeowners. 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 for you.
