South Florida borrowers recently began receiving payouts from a $3.6 billion fund created by the federal government and 13 private mortgage servicers as part of a settlement ending litigation over widespread foreclosure malpractices. But some recipients are now saying the checks have bounced, the Palm Beach Post reported.
The Independent Foreclosure Review mailed more than 1 million checks April 12 as part of the January agreement; some borrowers said they couldn’t cash the checks because of insufficient funds.
A fund official has assured them that it does have money in the bank, the Post said.
Florida has the second-highest foreclosure rate in the U.S., at one out of every 317 homes, just behind Nevada, where the foreclosure process has initiated on one out of every 306 homes, according to RealtyTrac.
The contracted paying agent, Rust Consulting, explained Tuesday the fund is capable of making good on the checks, which range from several hundred dollars to $125,000, the Post reported.
“We want to assure the public that checks we have mailed under the Independent Foreclosure Review Payment Agreement process are valid,” Rust Senior Vice President James Parks said in a release. [Sun-Sentinel] — Emily Schmall