The Florida Attorney General’s Office declared that Bank of America will be providing a billion dollars for relief to approximately 17,000 Floridians over a settlement for mortgage security fraud. $16.65 billion was paid by Bank of America Corp to finalize the investigation for sale of harmful mortgage securities by federal, Florida and other states during the housing bubble. The homeowners and communities that were the most affected during the Recession will be assisted with $7 billion while the other $9.65 billion will be is fines.
Besides this being the largest settlement in history, they Attorney General also described it as going beyond the cost of doing business. The Attorney General’s spokesperson stated that all the particulars of how much and who will be receiving the assistance is still being worked out. Loan modifications, principal reduction and forgiveness, and new loans to borrowers with worthwhile credit will be part of the relief given to consumers. Communities that are still recuperation from the recession will received donations and other will be provided with rental housing that can be affordably financed.
Of the $7 billion settlement, a seventh will be given to Florida to help homeowners and communities who were the most affected during the financial crisis. The majority of the toxic loans were done by the firms Merrill Lynch & Co and Countywide Financial Corp. These firms were attained by Bank of America in 2008.
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