Federal Funds To Aid Struggling Homeowners
TALLAHASSEE (CBS4) - Homeowners struggling to make their mortgage payments may be able to get a helping hand from Uncle Sam.
For the first time, more than one billion dollars in federal aid will be made available to Florida to help homeowners who have lost their jobs or who can no longer afford their mortgage payments. The money can be used to make loan payments for up to a year and a half and bring delinquent loans current, according to The Palm Beach Post. The maximum amount available under the Hardest Hit program is $35 thousand per request.
If the homeowner receives the assistance but sells the property within five years or goes into foreclosure, they will have to pay the money back to the state.
The Florida Housing Finance Corporation, which will be overseeing the distribution of the funds, believes it will help approximately 20 thousand homeowners.
Last October, Lee County took part in a test program. Of the 963 homeowners who applied for assistance, 64 were approved and 479 applications are either in the process of receiving assistance or still under review.
More than 400 homeowners' claims were rejected because they either owed more than $40 thousand on their loan, owned more than one property or were more than six months behind on their payments.
The application process will be opened to everyone in the state beginning next month.
Nationwide, $7.6 billion is being made available to 18 states and the District of Columbia which have been hit hard by high unemployment and a depressed real estate market.
Source: The Palm Beach Post
