Short Sale Power

Thousands of homeowners in Florida will receive up to 18 months worth of mortgage payments from the state program , which will opens for applications next month.It’s the first time the more than $1 billion in federal funding will be available statewide.

This is Aimed at unemployed homeowners or those who have jobs but don’t earn enough to pay their mortgage, the money, which was announced last year, can be used to make loan payments for up to 18 months and to bring delinquent loans current.

The most amount a person can receive is $35,000. It’s believe to help between the two strategies  can help about 20,000 people. Currently about 20 percent  or more of Florida borrowers were either 90 days past due or in foreclosure during the third quarter of 2010, according to the Mortgage Bankers Association.

The money will give people time  to focus on getting a job and back on their feet. The money is only asked to be paid back if the home is sold within five years or the homeowner goes into foreclosure. Even then, the state’s reimbursement is secondary to the payoff of the bank and other liens on the property.

 Unemployed and underemployed homeowners were targeted because they  have more trouble getting a loan modification through the federal Making Home Affordable program. In that program, a borrower must show they have enough income to make a lower monthly payment, which may not be possible if the owner is unemployed.

Florida’s share of the federal money comes from a larger pot of more than $7.6 billion awarded 18 states and the District of Columbia areas hit hardest by the economic slide and real estate bust. States given funding had unemployment rates at or above the national average and home price declines greater than 20 percent.

Florida received the second highest award behind California’s $1.9 billion.

The funds will be sent directly to  lenders. The pilot program has began in October of 2010. Since Florida began the pilot program in October, it has managed to get most major lenders on board, including Bank of America, WellsFargo, Chase, Citi Mortgage and Wachovia.

Fannie Mac and Freddie Mac also gave servicers directions on how the money should be handled. Fannie Mae issued instructions that foreclosures should be delayed on any homeowner who has been approved to receive the money.

Specializing in helping homeowners use a Short Sale to avoid home foreclosure in the Orlando, Osceola County, Lake County and Seminole County Florida real estate markets, including the following areas:
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