The Hardest Hit Fund is launching in Florida and many Florida homeowners are going to start receive communication from this organization. What is it and can they help?
This is a government fund set up to help homeowners pay their mortgage payments. There are many restrictions , but the general idea is to help homeowners stay in their homes. As is normal with the government, this is a quick fix that will have no lasting effect. If a homeowner were to get help making their payment for three months, they will be in the same situation in three months. There are no changes to the terms of the loan and you may have to pay back the money given to the homeowner from the Hardest Hit Fund.
The Hardest Hit fund does not help with a loan modification or provide any long term solution to a homeowners issues. In this respect, it is a total failure. Then why does it exist? It exists to funnel money from the government to the banks. If a homeowner is behind, it may not be enough to even get current on their loan.
At Myers & Eichelberger, we can assist homeowners to evaluate their financial health to find out if the Hardest Hit Fund is a workable avenue for them. In many occasions and situations, it is not. In truth, the homeowner needs a reduction in principle which can be obtained via a loan modification. Keep in mind, just because a homeowner cannot get a loan modification on their own does not in anyway mean a loan modification is not possible.
While the government programs, like the Hardest Hit Fund, have the best intentions of helping homeowners, in reality and in practice this is not always the case. By reaffirming the loan and creating a new loan, what seems like free money can end up costing a lot of money in the long run.
The ME Law Firm is dedicated to helping people through their toughest times. Call us at 1-888-ME-HELP-YOU for a free consultation or visit us at www.theMElawfirm.com