Foreclosure Rule Changes In Florida
Whitney Ray from News Channel 7 in Panama City Beach has reported on 2 very sensitive subjects: Loan Modifications and Mediations with lenders.
Ms. Ray reports that after December 31st, one must be a licensed mortgage broker and hold a license from the state of Florida in order to do loan modifications. There are many companies that have jumped into the fray by setting up shop as loan modification companies. So, if any of your clients are considering loan mods, make sure that they are working with a licensed entity.
I knew about the new loan mod law, but hadn’t read much on mediations. In my opinion, this is a great step in helping people stay in their homes. As Ms. Ray reported, there have been successes when mediations have been put into place. I will be watching how this plan is rolled out and how it is implemented.
Foreclosure Rule Changes In Florida
Floridians facing foreclosure will ring in the New Year with a better shot at saving their homes.
Reporter: Whitney Ray
Floridians facing foreclosure will ring in the New Year with a better shot at saving their homes. An estimated 500-thousand Floridians will be in some stage of foreclosure when the ball drops signaling the start of 2010. Help from the banks, the courts, and the state could help more people keep calling home, home.
The New Year will bring new tools for borrowers looking to renegotiate their loans. Attorney General Bill McCollum talked Bank of American into being more accessible.
“We will see a sizeable number of people; come the first of the year, in this state, on the ground trying to meet face to face with people.”
At the stroke of midnight on December 31st, no longer will loan modifying businesses be able to practice without a state licenses. Bill Spann, Chief of Staff of the Office of Financial Regulation, is already screening thousands of applicants.
“There were some complaints and it’s yet another portion of the industry that we are tightening up on.”
Borrowers in danger of losing their homes will have more opportunities to work it out with lenders. The state’s highest court is mandating mediation for people who want to stay in their homes.
Negotiations between the lender and the borrower will have to begin soon after foreclosure proceedings have been filed.
Marc Tapps of North Florida Legal Services represents 450 people trying to save their homes. Tapps says face to face meetings will help families stay in their homes.
“Every time I’ve gone to mediation and there’s been a lender rep there we’ve walked away with a deal.” And more deals being made, means more families get to stay in their homes.
More than 5-thousand businesses have applied for a license with the office of financial regulation. People caught modifying loans without a license could face five years in prison or a 5-thousand dollar fine.