Citrus County Chronicle
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Jobless homeowners can get help with payments

By Chris Van Ormer

August 10, 2010

Would losing your job put you out of your house?

“Funds should be coming to Florida from the White House to help people make up their mortgages when they become unemployed because of the economy,” Kevin Cunningham, president of the Realtors Association of Citrus County, said Tuesday.

Two federal programs will put up $3 billion, and Florida homeowners would use the cushion if they become unemployed. However, as the programs have yet to be officially launched, application details have not been released. The two funds would be serviced through housing finance agencies that create aid programs.

“The county is aware of the programs, but nothing is in the works so far with the county,” said Jim Hunter, public information officer with the county government.

Likewise, GreenPath Debt Solutions, a nonprofit financial organization, will not be administering the programs either, said Kathy Conley, housing specialist. Conley said the programs will come through the Florida Housing Finance Corporation and are not expected to be available until December. However, the nonprofit could offer help to homeowners facing foreclosure, who can telephone (888) 860-4167. GreenPath has an office in Inverness for debt counseling.

Florida is among the 18 states eligible through the first program to receive some of the $2 billion of additional assistance the U.S. Department of the Treasury will make available. Specifically, Florida is slated to receive $238,864,755 through the existing Housing Finance Agency Innovation Fund for the hardest-hit housing markets. This funding is targeted for homeowners struggling to make their mortgage payments because of unemployment.

In the second program, the U.S. Department of Housing and Urban Development soon will launch a complementary $1 billion Emergency Homeowners Loan Program to give assistance for 24 months to homeowners who are at risk of foreclosure because of reduced income through involuntary unemployment or a medical condition.

Cunningham said the announcement was good news for county homeowners if the programs can be offered to them.

“Anything helps if we can keep people in their homes in these hard economic times,” Cunningham said.

The 18 states eligible to receive support under the hardest-hit program have all experienced an unemployment rate at or above the national average during the past 12 months. Each state will use the funds for targeted unemployment programs that provide temporary assistance to eligible homeowners to help them pay their mortgage while they seek re-employment, additional employment or undertake job training.

The HUD program will work through a variety of nonprofit entities and will offer a declining balance, deferred payment “bridge loan” (zero percent interest, non-recourse subordinate loan) for up to $50,000 to assist eligible borrowers with payments on their mortgage principle, interest, mortgage insurance, taxes and hazard insurance for up to 24 months.

Under the program, eligible borrowers must: 

• Be at least three months delinquent in their payments and have a reasonable likelihood of being able to resume repayment of their mortgage payments and related housing expenses within two years. 
• Have a mortgage property that is the principal residence of the borrower, and eligible borrowers may not own a second home. 
• Demonstrate a good payment record up to the event that produced the reduction of income.
  House prices stabilizing

Average house prices are trending toward stability with slight rises each month.

“Our biggest news is that we’re bouncing along the bottom,” said Kevin Cunningham, president of the Realtors Association of Citrus County. “Prices are starting to stabilize.”

April — $107,468.

May — $111,366.

June — $111,932.

July — $112,074.

“These figures are telling us that prices are stabilizing in Citrus County,” Cunningham said.

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