The housing market crash of 2007 caused millions of American homeowners to face the risk of foreclosure because of declining property values and staggeringly high unemployment rates. In 2010, a year after the worst part the crisis, the Obama administration initiated the ‘Hardest Hit Fund’ in an attempt to help homeowners who were affected the most. Today, 18 states and the District of Columbia are taking part in the program. But not all of the states are benefiting, especially Florida.
Florida Has the Lowest Rate of Approval For HHF Assistance
Unfortunately for Floridian homeowners, the state has the lowest rate of approval for assistance, one of the highest rates for denying it and a general slowness in processing the thousands of applications it receives. Of the 109,775 homeowners who applied for assistance – second only to California – only 22,400 have received it. This equates to a 20 percent rate of approval, the lowest of all the states.
When the Obama administration implemented the ‘Hardest Hit Fund’ program, it estimated that 106,000 Floridian homeowners would receive help from it. With the program scheduled to end in December of 2017 that number has plunged to just 39,000. According to a detailed report, there are several factors contributing to this.
- Florida’s government officials failed to persuade banks and loan servicing companies to participate in the program, which the treasury relied on.
- Florida’s government officials cut the number of months unemployed homeowners could receive help from 18 to 6 months, even though 43 percent of unemployed workers were jobless for more than six months.
- The Treasury Department failed in pressuring the state to act accordingly.
For more information about the Hardest Hit Fund and how it might possibly help you, contact a real estate attorney today.
Stephen K. Hachey, a Florida real estate attorney, can help your wade through this process and determine a positive solution. Contact him at 813-549-0096.
The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.