Not All Regions Are Benefiting from Foreclosure Rescue Measures

Not all regions are equally benefiting from foreclosure rescue measures. So far only two families have got help from a programme in Plantation. Initially it promised help to those borrowers who were failing in their mortgage payments or if funds were required to make security deposits for rentals. The plan had started in August 2008.

According to city officials the conditions of the programme have been so stringent that only two families have been able to get help.

The plan offers assistance up to $10,000 to anyone defaulting. Anyone who has already lost a house to foreclosure could get $3,000 as funds towards paying for rental security and advance. But it is not easy to qualify for the help funds. It requires applicant to prove that they will be able to continue with mortgage payments after receiving help.

Councilwoman Diane Veltri Bendekovic said, "If my understanding of the guidelines is correct, how does an unemployed applicant have the resources to make payments on their home?" The assistant mayor of Plantation Daniel Keefe echoes the same sentiments. He said, "The program is not very effective due to the stringent qualification criteria."

A private company named Community Redevelopment Associates of Florida was appointed to manage and distribute the fund of $762,840 as grant from State Housing Initiatives Partnership. CRAF has to strictly following guidelines laid down by the state and the feds to see proper usage of the money. Keefe added, "While it may seem heartless that we can’t assist a family behind on mortgage payments because of a lost job, if they can’t continue to make mortgage payments in the future because of that job loss, we’ve only put off the inevitable by assisting them".

Shekeria Brown of CRAF argued that the low response was due to the grim economic situation. She said, "When we started the program, there were many cases of mortgage adjustments, but now, fast-forward a year, we’re seeing a lot of people calling us after losing their job. Last year it was more about [adjustable-rate mortgage] adjusting; now there’s a lot of people who lost their jobs and lost their income for a few months."

Those applying would have to prove that they failed to meet the previous due payments because of loss of income, divorce, death, unexpected illness or sudden essential repairs to the house. Those applying for funds for rental purposes have to prove that they have recently been foreclosed upon and need shelter.

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