The recession hit Florida homeowners particularly hard and those homeowners are still recovering while they deal with seeing the value of their homes decrease. A loan modification and other programs have been an essential tool for homeowners who wish to stay in their homes in Florida and elsewhere. A new program has been implemented that will help homeowners reduce the principle they owe and reduce their payments; which in turn can help them avoid foreclosure, especially for those who are not behind but may still be struggling.
The new program is designed to help the one-third of Florida homeowners who are still considered underwater with their mortgages. The program will help nearly 10,000 homeowners whose homes have lost value due to the housing crash. There has been $350 million allocated for the program.
If borrowers owe 125 percent more for their mortgage than the home is currently worth, they may qualify for the program. The home loan must also amount to less than $350,000 as the principal balance. It is estimated that the program could help homeowners reduce their principal mortgage amount by $50,000.
This program and other loan modification programs out there can be confusing for some homeowners to filter through. It is vital that any Florida homeowner seeking help to stay in their homes know all of the facts about any given program, including how a loan modification may work. Help filing out documentation and gathering all of the information may also be beneficial for homeowners looking for help as they set out trying to find a way to stay in their homes.
Source: HeraldTribune.com, Florida program to offer mortgage reductions, Josh Salman, Sept. 20, 2013