Homeowners in Florida facing foreclosure may qualify for federal programs intended to help those who were hit hard by the housing crisis. Many people dealing with real estate issues often find that they are upside-down on their homes. In other words, they owe more money on their house than the house is worth. To combat the situation, which countless people across the country find themselves in, the federal government launched several assistance programs. Unfortunately, a recent report found that Florida is failing to execute that effort.
There are 18 states that participate in the Hardest Hit Fund, which is a program run by the U.S. Treasury Department. These states are tasked with approving homeowners for much-needed assistance when they face foreclosure. However, the special inspector general for the Troubled Asset Relief Program evaluated Florida and determined that the state is not performing as it should.
The report found that Florida has one of the highest rates of denying homeowners assistance. Further, the state has one of the lowest rates of granting assistance to homeowners. The U.S. Treasury Department claims that the program has taken several steps forward recently. However, critics claim that the Treasury Department failed to set spending targets that would have enabled Florida to provide assistance to homeowners earlier during the economic downturn.
People who are at risk of losing their homes should know which programs are available to them and how to secure assistance. The sooner a homeowner takes action, the better off they may be. Anyone with questions about this issue should consult with an attorney.
Source: CBS Miami, “Federal report: Florida lags in disbursing foreclosure aid,” Oct. 6, 2015