Mississippi, like the rest of the United States, has recently suffered from high foreclosure rates that have seen large numbers of homeowners lose their homes. During the height of the foreclosure crisis, many home losses throughout the country were due to robo-signed documents, which have since been determined to be fraudulent. For those in the Jackson area who have lost their homes due to foreclosure, some financial relief may be at hand as a nationwide settlement with several large banks is providing funds for the state.
As a result of the settlement, homeowners in Mississippi will share in $13.1 million. Much of this money will go toward direct relief efforts that include loan modifications. A further $8.4 million will go to those who have already been foreclosed on, and $11.2 million will be used to fund a refinancing program. The state itself will receive $14.2 million for its general fund.
According to the state’s Attorney General, there had actually been no issues with the fraudulent robo-signing within the state, because the state uses judicial foreclosure, protecting consumers. The ways in which the funds are to be split were defined by the settlement agreement and not by the state of Mississippi itself. Those holding mortgages from Freddie Mac or Fannie Mae will not be able to receive any of the relief funds.
For those who cannot receive relief from the allocated funds, there are still options available to stop foreclosures. Those options include the right of homeowners to file for bankruptcy to try to stop the foreclosure process. Depending on the bankruptcy type filed for, a homeowner can then use the bankruptcy process time to rearrange expenses to meet mortgage payment demands, or attempt to have the mortgage dismissed in court. If you feel that you would like to explore these alternatives or need assistance with your foreclosure, please contact a bankruptcy attorney. They will be able to further assist you in determining which legal options available to you are best for your situation.