According to the Baltimore Sun, the state of Maryland expects to receive about $88 million of a $2.1 billion national settlement reached with Ocwen Financial Corp. over the “systematic misconduct” of the mortgage servicer’s handling of loans.
The deal was announced last month, after the Consumer Financial Protection Bureau and officials from Washington, D.C. and every state except Oklahoma filed a federal complaint against the provider. The complaint said that Ocwen “committed a range of unlawful acts, including improperly rejecting loan modifications, charging customers inappropriate fees and failing to maintain accurate account statements.”
The provider specializes in servicing non-bank, subprime and delinquent loans. According to the Sun, the settlement will provide, “$2 billion toward principal reductions and $125 million in cash payments to about 185,000 borrowers nationwide who lost their homes to foreclosure between 2009 and 2012.”
“This will bring relief to Ocwen victims and it will improve conditions in the mortgage market by reducing the number of foreclosures,” said Richard Cordray, director of the Consumer Financial Protection Bureau, in a press release.
In November 2013, Maryland had the third-highest foreclosure rate in the country. Under the settlement, Maryland will receive about the sixth-highest amount of compensation among states (about 4.3 percent of the settlement).
Locate a Maryland Foreclosure Attorney
If you are worried about losing your home, you should be aware that reorganizing your debt by filing for bankruptcy could help you save it. During a Chapter 13 bankruptcy, a person can enter into a repayment plan lasting between three to five years. If you have a mortgage, this can give you time to pay off your debt, as an automatic stay goes into effect that prevents a lender from taking actions against you to collect debts.
Chapter 13 bankruptcy can also provide debtors with a chance at a lien strip, which eliminates “junior mortgages”—these are second or third mortgages that can be discharged through your case. It also gives people an opportunity to catch up on past due property taxes.
If you are struggling with debts and facing the threat of foreclosure, you can contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation. Our attorney wants to help you save your home.
Law Firm of Kevin D. Judd– Maryland and Washington DC bankruptcy attorney
Judd’s Judgment: Chapter 13 bankruptcy cases can last from three to five years.