Landmark Financial Reform Legislation May Help Troubled Homeowners
The new financial reform legislation which was approved by a committee of the House and Senate on Friday includes a provision designed to aid unemployed homeowners threatened with foreclosure. According to the legislation, $1 billion will be allocated to ensure unemployed homeowners do not lapse on their mortgage payments. Qualified homeowners (ie. those who have a reasonable prospect of resuming mortgage payments within 24 months) may be able to borrow up to $50,000 to assist them with mortgage payments.
In the face of rising unemployment rates and a growing number of foreclosure filings, legislators introduced the provision to reduce the likelihood of families being unemployed and homeless at the same time. As unemployment rises, families are more likely to lose their homes in the growing financial crisis.
This particular initiative was modeled after a successful Pennsylvania program that has helped tens of thousands of unemployed workers avoid foreclosure.The provision is part of the financial overhaul legislation which is expected to receive a final vote next week. Legislators have told the President it will be ready for his signature by July 4th.
If you have questions about this program and it's effect in Florida, contact a Florida Foreclosure Defense Attorney.
Greg Gilbert
Keith Maynard
