The threat of foreclosure: Florida slow to help homeowners

The threat of foreclosure: Florida slow to help homeowners

Certain states are being hit harder by foreclosures, and Florida is one of them. However, many of the states that are experiencing high foreclosure rates, are not spending the millions of dollars set aside to them by the federal government -- money that is intended to assist homeowners facing the threat of foreclosure. In fact, the federal government has set aside $7.6 billion in its Hardest Hit Fund, specifically to help homeowners. But the hardest hit states, like Florida, have only paid out $3 billion of that money.

The federal government created several initiatives to help victims of the recession avoid the loss of their homes. The nation's capital along with 18 different states have created 66 programs to make use of the money in this fund. The money is allocated to different states, depending on the housing crisis' effect on them.

Unfortunately, the states hardest hit by the crisis have distributed the least amount of their Hardest Hit endowments. Florida, for example, has only disbursed 26 percent of its money. Alabama has disbursed 21 percent. Rhode Island, on the other hand, has disbursed 84 percent.

Some critics claim that the Treasury is partly to blame for states that have not paid out a lot of their money. They say that the Treasury has failed to specify the exact number of homeowners that states are supposed to assist. Certainly, the task of distributing $7.6 billion is a time-consuming one that comes with a great deal of complexity. In the meantime, Florida homeowners who are struggling against the threat of foreclosure have legal options available, which can help them avoid foreclosure and get on firm financial footing once again.

Source: dailydemocrat.com, High foreclosure states failing to get help to homeowners, Pamela Prah, Nov. 29, 2013