Want to stay in the Key West home you love but finding it hard to make the payment?
If you can hold on a little longer, hope may be on the horizon for you and other distressed homeowners in the state. Florida will be receiving $418 million dollars to help those who are unemployed and behind on their mortgage. Assistance will also be available for those who are overleveraged on their homes here in Key West and throughout the state.
The Housing Finance Agency Innovation Fund for the Hardest-Hit Housing Markets (HFA Hardest-Hit Fund) is aimed at preventing foreclosures by offering help to those most in need. The Florida Housing Finance Corporation, a state funded agency, will be providing updates and information on the status of the stimulus.
Florida is one of only five states that will be part of the program. (The others are California, Nevada, Arizona, and Michigan.) 1.5 billion dollars is allocated for the fund and distribution was based on how hard the area had been hit by the housing crisis and unemployment. Homeowners can sign up for email updates through Florida's Housing Finance Corporation.
Each state's proposals will be in by mid-April so the program should start going into effect in late summer or early fall. By lowering the number of foreclosures on the market, the government is hoping to stabilize housing prices in the affected states. There are several ways the program hopes to accomplish its goal.
Primarily the program will focus on mortgage modifications, but incentives for financial institutions are being offered if they agree to write-down portions of unpaid principal balances where there is a drastic negative equity. Help with short sales and deeds in lieu of foreclosure will also be provided under the proposed plan.
Making the short sale process easier helps homeowners and buyers. If you are interested in short sales or distressed properties in Key West or the Lower Keys call Margarita Villoch, your real estate resource for island living in the USA!
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