The Obama Administration moved on Friday to provide long-awaited assistance to homeowners struggling with underwater mortgages, even as new data suggests Florida is the hardest hit area in the nation amid the lingering foreclosure crisis.
While help will not be available for everyone, an experienced Miami foreclosure attorney should be called to assist struggling South Florida homeowners determine the best course of action, including loan modification, short sales, foreclosures, principal reductions and bankruptcy.
The government reported this week that 16 of the top locations in the nation for troubled FHA mortgages are in Florida — including Miami where 18 percent, or nearly 1 in 5 federally-insured mortgages, were in trouble.
CNN reported Friday that the new effort would require mortgage companies to reduce monthly payments to no more than 31 percent of a borrower’s income and mandate suspension of payments for 3 to 6 months for some borrowers, including the unemployed. Additionally, those in the government’s loan-modification program, known as the Home Affordable Modification Program, would be able to get a reduction in principal if their outstanding loan balance is greater than 115 percent of their home’s value.
The Washington Post provides a good Q & A for struggling homeowners, which answers questions for unemployed borrowers, those struggling with underwater mortgages, program restrictions, second mortgages, FHA loan options, impact on credit scores, delinquent payments, reductions for owners already in a loan-modification program, and taxpayer implications.
QA Will foreclosure-prevention measures affect me.pdf
If you have are facing foreclosure in the Miami area or are seeking home-loan modification in South Florida, contact Barakat, Jacobs & Associates for a confidential appointment to discuss your rights. Call (305) 350-5055.