A landmark mortgage settlement over the mishandling of millions of foreclosures nationwide could bring in billions of dollars in new housing aid for Florida homeowners, but critics of the long-awaited deal say the money isn’t nearly enough to help the millions of homeowners in hard-hit markets like South Florida.
“We’re looking at over 1 million [troubled] properties in Florida, and how many of them are going to be saved with these principal write-downs?” said Jack McCabe, CEO of McCabe Research and Consulting in Deerfield Beach, shortly after the national deal was announced Thursday. “I think that’s a precious few, maybe 20 percent.”
The $25 billion agreement was reached following 16 months of complex negotiations between 50 attorneys general and five major banks amid allegations of robo-signing and other abuses during the foreclosure crisis. Florida’s share: $8.4 billion, second only behind California.
Under terms of the settlement, Floridians who have lost their homes or have fallen underwater on their loans could receive a $2,000 check, a $20,000 mortgage reduction or a lower interest rate.