For many in Florida, economic struggles have hit home. Whether the result of a job loss, unexpected illness or other factors, many individuals and families are struggling to make ends meet each and every month. For those who are homeowners, trying to keep their home is a top priority. Loan modification may offer relief for some, but is not the panacea that many expect it to be.
In recent years, many Orlando residents have pursued mortgage modifications in order to avoid foreclosure. Mortgages can be modified in a variety of ways. Interest rates can sometimes be lowered or changed from adjustable to fixed. It is possible in some cases to lengthen the repayment term in order to reduce the amount due each month. In other cases, homeowners are even able to negotiate a principal reduction.
Dealing with debt or foreclosure is stressful. When you find out that you have become the victim of a scam dealing with mortgage relief or debt relief, the stress level increases. Orlando residents might like to read about two companies that have been banned by the Federal Trade Commission from offering debt relief or mortgage relief services.
Florida readers may be interested to know that Wells Fargo is being sued in federal court by the New York attorney general for obstructing and delaying mortgage modification applications in violation of the $25 billion settlement made last year. It is also alleged that the bank violated the timelines imposed by the terms of the settlement approximately 210 times. The lawsuit requests that the federal court in Washington, D.C., force Wells Fargo to comply with the agreement.
Pennsylvania homeowners who thought that they might get some relief from their foreclosure troubles may be disappointed following news of a recent lawsuit that was prohibited by a judge. The lawsuit alleged that Bank of America Corp went back on its obligations to assist homeowners who needed mortgage modifications and that many of the homeowners were foreclosed on as a result. The U.S. District Court judge hearing the case argued that the claims varied too much for inclusion in a nationwide class action suit.
More Florida homeowners, once facing foreclosures, are now receiving loan modifications in order to save their homes. According to a news report, a Florida mother of two who had received a loan modification discovered that, despite the modification, her home was still scheduled for sale.
A Florida man is facing foreclosure by Wells Fargo for making his house payments too early. In spite of records showing that the man paid his mortgage note early and in excess of what was due, the foreclosure is proceeding. According to the bank, the man did not follow loan modification guidelines, which is why they are foreclosing.
News for Florida's housing market, down in the dumps for many years during and after the Great Recession, continues to improve. Thanks to a more stable economy and an increase of loan modification applications, national foreclosure rates have reached their lowest levels in six years.
Florida has an elaborate foreclosure process compared to most other states, and it currently has some of the highest rates of foreclosure. However, the good news is that the number of foreclosures nationwide has dropped to the lowest level since 2009 and has declined nearly 20 percent since a year ago. According to a spokesman for LPS Applied Analytics, most new loans are high-quality, meaning that fewer new mortgages will end in a foreclosure.