News from the Florida Attorney General’s Office that may help Michigan homeowners stop foreclosure.

Attorney General Pam Bondi said Friday that claim forms will be sent to all Florida borrowers who are eligible to receive payment under the $125 million portion of the total $2.1 billion Ocwen national mortgage foreclosure settlement approved in February.

The settlement set aside for payments to Ocwen borrowers who lost their homes to foreclosure between Jan. 1, 2009, and Dec. 31, 2012. Those eligible include borrowers who had mortgages serviced by Ocwen, Homeward Residential Holdings LLC (also known as American Home Mortgage Servicing, Inc) or Litton Loan Servicing LP.

An estimated 183,984 loans were foreclosed nationwide and Florida’s share of the payment is the second highest in the country with an estimated 26,000 Floridians eligible to receive a combined payout of more than $17.8 million of the total $125 million fund. The payment to individuals will depend on the number of claims filed but is projected to exceed $1,000.

Information on how to stop foreclosure in Michigan and Ohio.

Ocwen Financial Corporation and its subsidiary, Ocwen Loan Servicing, agreed to the $2.1 billion joint state-federal settlement to resolve allegations of mortgage servicing misconduct resulting in premature and unauthorized foreclosures, violations of homeowners’ rights and protections, and the use of false and deceptive documents and affidavits. In addition to the $125 million payment fund, the settlement also provides for $2 billion in the form of first lien principal relief with an estimated $342 million being provided to Florida homeowners.

Packages including a cover letter, claim form, and instructions are being mailed to eligible borrowers beginning last week. A reminder mailing will be sent out the week of Aug. 11. All claims must be submitted by the Sept. 15 deadline. Payment checks should be mailed starting Dec. 3.

People who have questions can call 866-783-5382 for assistance in either English or Spanish. Claimants can file their claims electronically at the website below or submit claims to the address below:

www.nationalmortgagesettlement.com

National Ocwen Settlement Administrator
P.O. Box 1917
Fairbault, MN 55021-7172