The opportunity to receive up to $12,000 in financial assistance to avoid foreclosure has not been much of a success in Florida.
Florida is one of five states hit hardest by the foreclosure epidemic. Notwithstanding attorney general investigations into alleged foreclosure mills, the demise of attorney David J. Stern and the temporary slowdown of foreclosure filings, there are still thousands of Floridians in danger of losing their home.
Designed to assist approximately 40,000 homeowners, only 9,439 applications were submitted in the first week of the state's Florida Hardest-Hit Fund $1 billion mortgage-assistance program. This is a comparatively low turnout compared with other federal relief programs.
Broward had the most applications with 1,638, followed by Miami-Dade (1,027), Orange (957), and Palm Beach (939). No applications were received from Gulf, Lafayette or Taylor counties.
First announced in February, 2010, the "Housing Finance Agency Innovation Fund for the Hardest-Hit Housing Markets" provides federal funding to states hardest hit by the real estate market collapse. To date, $7.6 billion has been infused into the HFA Hardest-Hit Fund for 18 states and the District of Columbia. Florida's total allocation currently stands at more than $1 billion.
The Florida Hardest Hit Fund (HHF) currently offers two programs.
•The Unemployment Mortgage Assistance Program, or UMAP, will provide up to $12,000 to pay monthly mortgage and escrowed mortgage-related expenses for up to six (6) months, or until the homeowner can resume making mortgage payments, whichever comes first. Homeowners in the UMAP are required to pay 25 percent of their monthly income toward their mortgage payment, with a minimum payment of $70 per month.
•The Mortgage Loan Reinstatement Payment Program, or MLRP, will provide up to $6,000 to bring a homeowner's past-due first mortgage current if they can demonstrate an ability to resume making payments on their own. For a homeowner who received funding under the UMAP program, any remaining funds can be used in addition to MLRP funds to bring a first mortgage current.
The eligibility requirements include:
•Florida resident;
•Primary residence;
•Unemployed or underemployed;
•Household income at or below 140 percent of area median income (AMI);
•Active checking or savings account;
•May not have unencumbered assets of $5,000 or more, or three times the mortgage payment (whichever is greater);
•No current bankruptcy;
•Not convicted of a mortgage-related felony in the last 10 years;
•Participating lender;
•Not more than 180 days past due;
•Mortgage originated on or before January 1, 2009;
•Existing principal balance of less than $400,000;
"This is nothing but a stop-gap measure," said Carlos Reyes, a foreclosure defense attorney with the Reyes Law Group in Fort Lauderdale. "There are too many restrictions and a lot of homeowners will not qualify for the simple reason that they are more than six months delinquent."
Floridians can apply for foreclosure assistance at: http://www.FLHardestHitHelp.org. The official website contains information on the application process, including a program fact sheet, answers to frequently asked questions and links to resources that are helpful to those experiencing challenges in a tough economy.
Authorities report that several "imposter" or "copycat" websites posing as Hardest-Hit Fund sites have been identified. Applicants are encouraged to verify that the website they are utilizing is the official Florida HHF website before providing personal information.
The Florida HHF application process is free of charge and applicants are not asked to pay for an eligibility determination service in conjunction with applying for relief.
If applicants are suspicious about a website, they should submit a report on the official HHF website by clicking the "Report Fraud" link on the homepage. They can also call the Florida HHF Information Line at 1-877-863-5244 to verify that they are accessing the correct website.
To review Bill Lewis' entire consumer protection series, visit http://www.williamlewis.us.
William E. Lewis Jr. & Associates is a solutions based professional consulting firm specializing in the discriminating individual, business or governmental entity. To learn more, tune into The Credit Report with Bill Lewis, weekdays at 9 o'clock on AM 1470 WWNN.
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