Florida Government Aid to Prevent Foreclosure
Struggling Florida homeowners can take advantage of government foreclosure assistance to avoid losing their homes. Even if you cannot keep your home, you can prevent the damaging credit consequences of foreclosure. All foreclosures occur judicially in Florida. To foreclose judicially, the lender must file a lawsuit against the homeowner. The process typically takes about five months.
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Making Home Affordable
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The federal program was established in 2009 to provide mortgage relief to homeowners. Through the Making Home Affordable program, homeowners can refinance or modify their loans. To qualify to refinance, you must be current on a Fannie Mae- or Freddie Mac-guaranteed loan. When you are already behind on the loan, a modification can potentially lower your payment. A loan modification works by lowering the interest rate and extending the length of the loan. In some cases, the principal balance can be reduced. To apply for the program, contact your lender.
Counseling
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HUD certifies foreclosure prevention counseling agencies throughout Florida. The counselors provide free or low-cost services to homeowners. Counselors can explain and answer any questions you may have about the Florida foreclosure process. Based on an evaluation of your loan details and finances, the counselor will determine which methods are best suited for you. For some homeowners, creating and following a budget helps. Other homeowners may need to refinance or request a repayment plan from the lender. In extreme cases, bankruptcy can be a last resort. To locate a Florida counseling agency, visit HUD.
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Hardest Hit Fund
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Florida is one of the states classified as hit the hardest by the decline in the housing market. The U.S. Department of Treasury awarded additional funds to the Florida Housing Finance Agency to help homeowners fight foreclosure. The program offers mortgage assistance to unemployed homeowners or those who suffer a financial hardship through no fault of their own. Eligible applicants can receive up to nine months of mortgage payment assistance. The program also offers legal aid and representation to low-income homeowners.
Mediation
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Mediation allows you and the lender to meet along with a neutral third party. The goal is to reach an agreeable solution before the foreclosure sale occurs. To attend mediation, you will need to respond to the foreclosure notice from the court within 20 days. Some possible prevention methods include selling the home through a short sale or deed in lieu of foreclosure.
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