Many people equate home ownership with the American dream, but with mortgage fiascos popping up all over the country, many Florida homeowners have been experiencing a nightmare. Many experience unwanted foreclosure or grapple with additional debt while trying to keep their heads above water and roofs over their heads.
Fortunately, Florida received $334 million dollars from the federal government to help those who have suffered from bad mortgages. Controversially, due to some creative math and logic not all of these funds may actually reach homeowners that have suffered due to the foreclosure crisis.
Florida was not the only state to receive funds to help those hit by the mortgage crisis. Similar payments were sent all over the country, totaling $25 billion. Many states have been diligent in assuring that all of the awarded money serves its intended purpose. It’s for the future to tell whether Florida is one of them. A spokesperson for the attorney general confirms that over $33 million is going to the Florida general fund and not directly to those who have been victims of foreclosure due to the robo-signing scandal.
As for the other $300 million that Florida received in the settlement, the details are yet to be determined. The state has asked the public for suggestions. Some are advocating for the money to be spent on housing-related causes such as low income housing or legal aid for homeowners. The decision may be influenced by states like Georgia who are taking their entire allocated amount and using it to attract new businesses, claiming that creating jobs will boost the economy and reduce the rate of foreclosures.
Florida officials claim that they intend for the $300 million to go to help homeowners; however, a lot of people are managing to twist the details of the crisis in order to serve their own purposes. Floridians need to stand up and speak out if they have ideas about how this money can best help their communities. Just because someone is an “official,” has a loud voice and a pedestal doesn’t necessarily mean that he has the best interests of the people in mind.
Source: The Miami Herald (blog), “Florida sends $33.4 million in foreclosure settlement money to general revenue,” Tolu Olorunnipa, May 22, 2012