Real estate professionals in Florida, Alabama, Mississippi, Louisiana and Texas, are getting $16 million in special allocated funds to pay claims for loss of income due to the Gulf oil spill.
The move was negotiated by representatives of state Realtor associations with Kenneth Feinberg, administrator of the new Gulf Coast Claims Facility handling the British Petroleum Oil Spill Fund.
No mortgage bankers will be provided funds on this claim.
Each state organization will receive funds based on the estimated losses of individuals and brokerages resulting from cancelled sales contracts, loss of income and depressed market conditions following the BP oil spill. The allocation is available to all real estate licensees with active licenses at the time of the loss, not just Realtors.
Until now, some real estate claims related to lost sales and loss of income were not included in Feinberg's protocol for payments from the $20 billion BP Gulf Coast Claims Fund, said Wendell Davis, a broker with Watson Realty Corp. in Jacksonville and president of Florida Realtors.
"Many real estate claims for loss of income due to the oil spill have been in limbo, leaving people with no way to pay their bills, take care of their families or keep their businesses going," he said.
Florida Realtors and the other state trade groups have contracted with Indiana-based NCA, an independent, national claims adjustment firm, to handle these claims and otherwise administer the funds.
The associations had to provide Feinberg with detailed documentation to request funds, including a timely, transparent and objective process for handling claims and for determining payments.
