Bailing out The People Made Impossible vs Bailing out Mega-Corporations

[FayeforCure]

Hurting Florida owners find 'Hardest Hit' cash hard to get.


ByKimberly Miller
Palm Beach Post Staff Writer


Updated: 9:03 a.m. Wednesday, Aug. 17, 2011

Posted: 7:44 a.m. Wednesday, Aug. 17, 2011


Deborah Stockhammer was four months late on her mortgage when she applied in April for federal foreclosure prevention money through the Hardest Hit program.

The Jupiter River Estates resident, whose search for work after being laid off has included an unsuccessful attempt at a Dollar Store job, soon was approved for the assistance.

But Stockhammer, 58, said her loan servicer has refused to accept the federal money to make her loan payments. She was served with foreclosure papers last month.

"The money is there, it's been allocated," said Stockhammer, who refinanced in 2007 and now has a loan serviced by Ocwen Financial Corp. "Why not use it instead of throwing people out?"

Florida, which was awarded more than $1 billion in Hardest Hit money, opened its program to Lee County residents last fall, with statewide applications accepted beginning April 18. Aimed at unemployed and underemployed residents, it allows a homeowner to receive six months' worth of mortgage payments up to $12,000, and up to $6,000 to bring late loans current.

As of Aug. 5, 1,202 Florida homeowners had received approval by both the state and their lender, or were already receiving money. That's up from just 50 approvals in late June.

Still, Florida's Hardest Hit plan is intended to provide assistance to an estimated 40,000 homeowners. Stockhammer's experience illustrates just one of the hurdles in distributing the mammoth block of money in time to save struggling borrowers.

Of 7,882 applications that have been reviewed to receive Hardest Hit money, 5,559, or 70 percent, were deemed ineligible. Most rejections were because the homeowner had racked up too many late payments - the program requires owners to be no more than six months delinquent - and because there was not an eligible hardship.

"Had they started this two to three years ago it might have been helpful, but at this point, a lot of the water is already under the bridge," said Lynn Drysdale, a Jacksonville attorney and co-chair of the National Association of Consumer Advocates, who nonetheless is supportive of Hardest Hit. "A program is going to be good as long as at heart it's there to help the borrowers."

So far, 24,624 Florida homeowners have applied for the program. Applications are filled out online then forwarded to advisers throughout the state for review and initial approval. Lenders must give final approval.

Cecka Green, communications director for the Florida Housing Finance Corp., which is overseeing the program, said it takes between 30 and 45 days to process an application. For the most part, she said, loan servicers and lenders have responded positively to the program, with 112 agreeing to accept the federal money for payment.

"I know it started off a little slower than some people wanted, but we're moving along," Green said. "There is still plenty of money available."

According to a quarterly expenditure report that was due Monday from the states that received Hardest Hit money, Florida has disbursed $36.9 million, about 3.4 percent of its allotment. Other states have spent even less money. Mississippi has disbursed just 2.5 percent of its $101 million, and Illinois has awarded 2.6 percent of its $445 million.

States have until 2017 to spend the Hardest Hit money.

Ocwen Financial, which services Stockhammer's loan, does participate in the Hardest Hit plan.

But even if a homeowner qualifies under the state plan, he or she may not be eligible under Ocwen guidelines, said Ocwen Executive Vice President Paul Koches.

Bottom line, Ocwen has to do what makes the most financial sense for the owners of the loan, Koches said.

Sometimes that means a short sale, a deed in lieu of foreclosure or repossessing the home instead of taking Hardest Hit money.

"We are grappling with Hardest Hit," said Koches. "But we will pursue anything and everything before foreclosure to meet the sweet spot for the borrower while maximizing the results of the investor."



Find this article at:
http://www.palmbeachpost.com/money/foreclosures/hurting-florida-owners-find-hardest-hit-cash-hard-1754014.html


Bail-outs for the People are exceedingly stingy. These are the stats for Florida's 2010 Hardest Hit Program (which is funded by the federal government):

• 24,624 Florida homeowners have applied for the program
• 7,882 applications that have been reviewed
• 1,202 Florida homeowners had received approval by both the state and their lender
• Florida's Hardest Hit plan is intended to provide assistance to an estimated 40,000 homeowners

Money going to the desired destination: the struggling homeowners of our state of Florida?

1,202 of 40,000 homeowners in need...............a whopping 2.5% of The People who needed help, actually got the help, vs 100% of mega-corporation that needed help got their help!!!!

I wonder how much "review" the bail-out requests by mega-corporations get?

Talk about being "penny wise and pond foolish"!!!

[BridgeTroll]

Here are the non emotional real world requirements to qualify...

An eligible homeowner:


•Must be a Florida resident;
•Must occupy property as primary residence (the property cannot be vacant, abandoned or rented);
•Borrower/co-borrower must be unemployed or underemployed through no fault of his/her own, which makes the first mortgage unaffordable;
•Must have documented total household income at or below 140% of the area median income (AMI), adjusted for household size;
•Must have an active checking/savings account that can be debited by the ACH method of funds transfer;
•May not have unencumbered assets of $5,000 or more, or three times the current monthly mortgage payment (whichever is greater);
•Cannot have a bankruptcy that has not been discharged or dismissed; and
•Cannot have been convicted of a mortgage-related felony in the last 10 years.
The current mortgage:

•Must be serviced by a participating lender, who agrees to accept payments on behalf of the homeowner;
•Must not be more than 180 days past due at the time of application;
•Must have been originated on or before January 1, 2009; and
•Must have an existing principal balance of less than $400,000.


https://www.flhardesthithelp.org/

[FayeforCure]

Here are the non emotional real world requirements to qualify...

An eligible homeowner:


•Must be a Florida resident;
•Must occupy property as primary residence (the property cannot be vacant, abandoned or rented);
•Borrower/co-borrower must be unemployed or underemployed through no fault of his/her own, which makes the first mortgage unaffordable;
•Must have documented total household income at or below 140% of the area median income (AMI), adjusted for household size;
•Must have an active checking/savings account that can be debited by the ACH method of funds transfer;
•May not have unencumbered assets of $5,000 or more, or three times the current monthly mortgage payment (whichever is greater);
•Cannot have a bankruptcy that has not been discharged or dismissed; and
•Cannot have been convicted of a mortgage-related felony in the last 10 years.
The current mortgage:

•Must be serviced by a participating lender, who agrees to accept payments on behalf of the homeowner;
•Must not be more than 180 days past due at the time of application;
•Must have been originated on or before January 1, 2009; and
•Must have an existing principal balance of less than $400,000.


https://www.flhardesthithelp.org/

Totally amazing that only 1,200 or so have qualified of the 25,000 who have applied!

No rush apparently for bailing out The People, but boy did they ever rush to bail out the mega corporations. What were the requirements for their bail-out again?

[JeffreyS]

The banks are not readily accepting the government money even if they qualify.  There are other incentives out there that the bank can take advantage of if people are having trouble paying.  One thing Floridians should know is in this state you can go to binding arbitration where the banks are more likely to act quickly and make arrangements if you qualify.

[FayeforCure]

The banks are not readily accepting the government money even if they qualify.  There are other incentives out there that the bank can take advantage of if people are having trouble paying.  One thing Floridians should know is in this state you can go to binding arbitration where the banks are more likely to act quickly and make arrangements if you qualify.

JeffreyS, can you provide a link for the binding arbitration process? How often is it used?

Who are the arbitrators, and how do you qualify for arbitration/ loan modification. Does it ever involve lowering the principal?

Currently HAMP will only provide for lower interest rates, and interest only payments for 5 years, but you are still stuck with a home that is worth 30% less than your principal amount.

Does it make sense for homeowners to keep paying?