The Federal Emergency Homeowners' Loan Program (HUD), created to help unemployed and underemployed Americans about foreclosure, officially came to an end September 30, 2011. The program was allocated $1 billion to help struggling homeowner, however, only $432 million was used. The remaining unused funds will be return to the United States Treasury.
Initially, the program was designed to help roughly 30,000 homeowners. However, only 11,832 of the 100,000 who applied for the program were "conditionally" approved to receive aid. Each of those approved will receive between $35,000 - $45,000 according to Brian Sullivan, a representative of the Department of Housing and Urban Development.
The Emergency Homeowners' Program's inability to reach its goal is being chalked-up to the program taking too long to start. The program began accepting applications 6 months after intended, in June 2011, a whole year after the legislation for the program was passed. Lewis Finfer, executive director of Massachusetts Communities Action Network, is calling the program's failure "sad and shameful," and that the program added more requirements while failing to fully advertise the program.
Carol Galante, the program's assistant secretary of housing stated, "We understand that there is disappointment that the program is not reaching more families." The eligibility requirements barred a lot more homeowners than projected. Thirty-two states were to receive aid from the program. Pennsylvania used its fully allowable amount of $106 million and was able to help 3,056 homeowners. Only 2 states received more funding, New York and Texas. Pennsylvania was one of 5 states that established and ran their own similar program. In the other 27 states, program administrators ran the program.
This is the just the latest example of government entities failure to design and implement foreclosure relief programs for the millions of struggling homeowners across the country. If you are facing a Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Defense Lawyer or a Florida Foreclosure Defense Lawyer today to determine what foreclosure avoidance options may be available to you.
