A new federally funded program is now accepting applications for mortgage assistance payments in Florida. The Florida Hardest-Hit program pays an applicant’s mortgage for up to six months to help them to focus on finding a job. There is a maximum, however, of $12,000. Also, the program will pay out up to $6,000 to bring loans current. If this seems meager, it is. Governor Scott gutted the program and stripped it of all effectiveness by changing the terms from 18 months of assistance to six. Ostensibly, this was done to open the program to more people. The problem with such a change is that the assistance provided will do little good to the people that need it most, those who bought houses during the height of the bubble and thus are extremely underwater. Additionally, loans that only need $6,000 to be current are hardly the loans that merit special federal assistance.
Oppenheim Law encourages homeowners to participate! The lack of effectiveness is not stopping homeowners from applying, nor should it. Any help is better than no help at all. Yesterday, the first day of the program, saw many more applications than were expected. However, an official tally for the state won’t be available until the end of the week.