Florida’s Rejection of Foreclosure Aid a ‘Shame,’ Says Tampa Bankruptcy Attorney
May 20, 2016
Brandon, FL (Law Firm Newswire) May 20, 2016 – Florida officials opted not to apply for any additional federal mortgage assistance.
In February, the U.S. Treasury Department announced that the federal Hardest Hit Fund, created in 2010 to combat the lingering effects of the housing crash, would be expanded in two phases of $1 billion each. In the first phase, Florida received $78 million. But Florida declined to apply for any additional funds in the second phase, leaving as much as $250 million on the table, a decision that irked elected officials and local professionals.
Reggie Osenton, a bankruptcy attorney in Tampa, said Florida homeowners could have used the help.
“The housing crash hurt them tremendously,” said Osenton. “Even after years of rising home prices, many are still underwater. I can’t imagine what state officials are thinking. This is a real shame.”
Florida Sen. Bill Nelson called the turn of events “tragic.” Nelson has strongly criticized state officials for their handling of the Hardest Hit programs.
In October 2015, a report by the special inspector general of the Troubled Asset Relief Program, or TARP, found Florida lagged far behind all other states in disbursing money from the Hardest Hit Fund. Five years after the program’s creation, the state had disbursed just half of its original $1 billion allocation, and had only two years left to pay out the remainder in order to meet the original deadline of December 2017. The deadline has since been extended to December 2020.
Governor Rick Scott’s office declined to comment to the Tampa Bay Times on the decision.
“If state officials think homeowners don’t need this relief, they’re wrong,” said Osenton. “An additional quarter-billion dollars could have had a lasting impact on countless Florida families.”
Learn more at http://www.brandonlawoffice.com/
Osenton Law Office, PA
500 Lithia Pinecrest Road
Brandon, Florida 33511
Call: (813) 654-5777
- Another family law reform bill falls to Gov. Scott’s veto pen
Florida Gov. Rick Scott vetoed a contentious bill that would have reformed the state’s alimony system and altered rules on child custody in divorces. The bill would have required judges in divorce proceedings to adopt a premise for approximately equal time-sharing of children between spouses. Judges could adjust the split based on 20 factors listed […]
- Bankruptcy can be a good thing
When businesses declare bankruptcy, sometimes they come back better than ever. That’s what executives at retail giant Sports Authority are hoping they can achieve. Like many businesses focused on brick-and-mortar stores, the chain has struggled in recent years as consumers have shifted toward online shopping. The company has filed for Chapter 11 bankruptcy protection, giving […]
- No, you won’t be arrested for nonpayment of debts
The headlines on stories about a recent incident in Texas may have debtors worried about what could happen to them if they fall behind on their debts. A Houston man named Paul Aker was involved in a sequence of events that began with defaulting on a student loan and ended with his arrest. In a […]