Florida Hardest Hit Fund Archives

Millions Left Unspent after State Ends Federal Foreclosure Aid

Posted on February 1, 2018by Admin

This week Florida closed its three largest Hardest Hit federal housing-aid programs, years early- leaving $88 million unspent. This closes three opportunities for struggling homeowners, which includes: mortgage help for the unemployed and underemployed, aid on delinquent home loans and mortgage principal reduction.

Florida’s Hardest Hit program helped only about half the number of the approximately 100,000 Floridians who applied since it launched in 2010. The program was troubled from the start, with “technical issues” such as rolling out with crashed computers and an eight-month delay to get approved.

Compared with 17 other states that were part of the program, Florida had the lowest admission rate, even though Florida had one of the most severe home-price corrections in the nation, according to a 2015 federal report. The delayed disbursement of money from the program has not gone unnoticed and has drawn criticism.

“It’s criminal,” said one Florida resident, who tried unsuccessfully to apply for the funds. “I had all my ducks in a row but could not get through on the phone. I ended up standing in their lines, but there was no follow-up. It was a complete waste of time.”

Another Florida applicant said, “They put me through the ringer. They were so rude, so ugly. I tried so many times. I got turned down so many times. It was just totally ridiculous.”

U.S. Rep. Darren Soto, D-Orlando, said the money approved during the Obama administration could have been deployed quickly to help speed up Florida’s recovery from the crash and save families from foreclosure.

“Unfortunately, Governor Scott and Republican legislators dragged their feet for years in getting the FHFC [Florida Housing Finance Corporation] to deploy significant funds and various assistance programs, undermining the effort and stifling its effectiveness,” Soto said. Though the state has moved toward recovery, it remains one of the few yet to rebound fully, according to data from the National Association of Realtors.

Sen. Bill Nelson, D-Florida, has consistently called for investigations into Florida’s oversight of the federal spending program.

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Debt Relief, Foreclosures, Timothy Kingcade Posts

State Passes on Hardest Hit Funds- Florida Homeowners out $250 Million

Posted on April 21, 2016by Admin

Floridians fighting to save their homes from foreclosure are losing out on $250 million in mortgage assistance because state officials opted not to apply for additional money from the federal Hardest Hit Fund. The fund was created six years ago to help those states hardest hit by the housing market crash and foreclosure crisis. All of the board members who voted to turn down the assistance were appointed by Governor Rick Scott, a Republican who has opposed federal bailout programs and whose office once pressured the housing agency to limit the time homeowner’s could receive the Hardest Hit help.

Florida Senator Bill Nelson calls the decision “tragic” and has repeatedly blasted state officials for their slowness in spending the $1 billion that Florida originally received. As of January 1, 2016, the state had spent less than two-thirds of that amount and helped only 25,000 homeowners while rejecting 120,000.

In addition, the federal official who oversees the Treasury’s management of the Hardest Hit Fund has criticized Florida, issuing a report that found the state had “consistently under-performed” other states in the use of the relief money.

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Debt Relief, Foreclosures, Timothy Kingcade Posts

Florida’s First-Time Buyers Program is finding its way to Previous Owners

Posted on January 22, 2016by Admin

When Florida received its portion of the Hardest Hit Fund, the goal was to help first time home buyers fund their down payments. However, it is now being used to assist those who have previously owned a home.

Unfortunately, thousands who are behind on their current mortgages in Florida are still waiting for assistance from the program. After five years, only 24,000 of the 116,000 who applied for assistance from the Hardest Hit Fund have received aid. There is reportedly $1 billion in unspent funds that has to be used by December 2017 or it must be returned to the U.S. Treasury Department.

Florida’s Housing Finance Corp. is in charge of the state’s program and says the purpose of the down payment assistance portion is to bolster the real estate market in areas hit hardest by the foreclosure crisis.

One Spring Hill resident said he has been waiting for assistance from the program since August so that his home of 30 years does not go into foreclosure. “You give the guy down the block money to buy a house and then this one has to go into foreclosure. It makes no sense,” he said.

Troubled Asset Relief Program’s (TARP) Christy Romero said, “Florida has not done a good job of getting this money out to homeowners and rather than do a better job on existing programs, they create other programs to spend on someone else.”

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Credit, Foreclosures, Timothy Kingcade Posts

Federal Government to Investigate Florida’s Housing Program

Posted on April 15, 2013by Admin

Last week, the federal government announced that it would begin investigating the Florida Hardest Hit Fund. The $1 billion state housing program is designed to help homeowners avoid foreclosure. The investigation was called for by U.S. Senator Bill Nelson who said the program was poorly run and not reaching enough people. Sen. Nelson went on to say that it is good news for Florida homeowners and will give them more access to the help that should be available to them.

The program was established as a part of a national program to help homeowners who are struggling as a result of the Recession. However, the program has been struggling to reach those who need assistance. As of March 1, 2013, only approximately 38 percent of the processed applications had been approved. Nearly half of the applicants had yet to be told whether they would get help from the Hardest Hit Fund. Broward County had more applicants than any other county in the State of Florida, with more than 6,000 of the 44,854 applications. The Florida Housing Finance Corp. administers the Hardest Hit Fund and defended the program last month in a letter to Sen. Nelson. In the statement, the agency’s executive director stated that the fund has been reviewed by the U.S. Department of Treasury and two state agencies, which found no evidence of wrongdoing.

Click here to read more about the Federal Government’s announcement to begin investigating the Florida Hardest Hit Fund.

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