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.
Foreclosures in the U.S. are now down to pre-recession rates. According to a recent report, the rate of new foreclosure filings has fallen to its lowest level since 2006. At the same time, property values are on the incline, which has allowed many homeowners who were underwater to get rid of some negative equity and ultimately sell their houses. While things are looking up for the country at large, it is true that many people here in Florida are still struggling.
In recent years, many homeowners in Orlando have looked to mortgage modifications as a way to prevent foreclosure and maintain ownership of their homes. Banks as well as the state and federal government have programs that may help some homeowners obtain principal reductions, decreased interest rates and revised payment schedules in order to make homeownership affordable. When Florida residents consider mortgage modifications, however, they must do due diligence.
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.
When most people think of foreclosures and financial difficulties, they likely don't think of publicly elected officials having these types of problems. In the midst of the economic downturn, one Florida mayor found himself and his family facing some very real financial issues. Recent reports claim that the mayor of Coral Springs is losing his home to foreclosure. His wife came forward recently to speak about the issue.
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.