Florida has some of the hardest hit home loan problems that disturb housing affordability and home devaluation. However, scuffling homeowners in Florida can receive up to six months of mortgage payments (cap of $12,000) from the Florida's Hardest Hit program to bring delinquent loans current.
Recently, released data which tracked Making Home Affordable activity through metropolitan areas of Cape Coral, Fort Myers, Daytona Beach and Tallahassee has shown home loan modifications on the rise. Struggling to overcome various difficulties have also found that home loan modification programs and extension plans needed unemployment assistance to be beneficial for a variety of homeowners.
This is the first time that more than $1 billion in federal funding will be available to Florida residents. The Hardest Hit program is targeted at unemployed homeowners and those who have jobs but don't earn enough to pay their mortgage. The grant will give people the opportunity to catch up on their mortgages to avoid foreclosure and focus on getting a job.
The program funds will be in the form of a 0%–interest, deferred–payment loan that will be subordinate to current mortgages on the home. The loan is forgiven at a rate of 20% starting 18 months after acceptance into the program (over a five–year period). The loan must be paid back if your home is sold prior to the end of the loan period and there are sufficient proceeds from the sale to pay all superior secured loans.
Florida's Recovery Help
Florida's Hardest Hit Fund is intended for people with a temporary hardship, it is help to keep some Florida homes out of foreclosure. The Hardest Hit Fund can help homeowners who are behind on the mortgage or are facing unemployment and the potential loss of their homes as a result.
To meet these objectives in Florida, the Authorities have developed an approach using state and local housing agency initiatives, tax credits for homebuyers, neighborhood stabilization and community development programs, mortgage modifications and refinancing, and support for Fannie Mae, Freddie Mac and HUD.
Florida residents living in the home they're trying to save, cannot have a second property, The mortgage can be no more than 180 days late at the time of the application and must have originated before January 1, 2009. The balance on the loan has to be below $400,000 and your housing debt has to be more than 31 percent of your monthly gross income. Your unencumbered assets cannot be more than $5,000 or 3 times the monthly mortgage payment.
Understandably, Florida home foreclosures will remain a problem, as is the case across the nation, but the foreclosure prevention plans do offer options outside of simple traditional modifications to help more Florida homeowners and military service members. The Program funds are for specific unemployment programs that provide provisional backing to the eligible home owners to make their mortgage payments while they hunt for a re–employment, an additional employment or undertake job training. The change in traditional foreclosure plans in Florida is a real boost to recovering unemployed home owners and get them back on their feet.