There is no doubt that Florida was one of the states that was hit hardest during the housing crisis. While the economy has begun to recover, there are still a lot of homeowners with mortgage loans that are considered underwater, where the market value of their home doesn’t cover the outstanding balance on their mortgage loan.
In an effort to help these homeowners, the aptly named Hardest Hit Principal Reduction program was developed and $350 million was set aside to help administer this program. When the program opened, there was a limited amount of applications available. In fact, only 25,000 applications were accepted during this first wave lasting only one week.
According to an update published in The Palm Beach Post, a total of $41 million has been set aside to help this first wave of applicants. A large portion of it has already been paid out to homeowners that had their applications approved, helping them to lower their mortgage principal.
Although there is still a significant sum of money left in the program, a spokeswoman for the Florida Housing Finance Corp. couldn’t confirm when more applications would be accepted. Cecak Green said that the board hasn’t yet made a decision concerning new applications or further approval of funds.
What about those homeowners that don’t qualify for the principal reduction program? Under this portion of Hardest Hit, those borrowers that have fallen behind on making their mortgage payments are barred from receiving loan reduction money.
Thankfully, this program isn’t a homeowner’s only option. Those that are facing mortgage debt can benefit from sitting down with an Orlando bankruptcy attorney that can provide advice and assistance for options available under the individual’s unique circumstances.
Source: The Palm Beach Post, “FL Hardest Hit mortgage reduction money going fast,” Kim Miller, Jan. 28, 2014