TALLAHASSEE, Fla. – April 19, 2011 – A $1 billion program expected to help 40,000 Floridians stave off foreclosure opened statewide Monday, setting off a first-come, first-served rush for government-aided mortgage payments.
The Florida Hardest Hit Fund program, administered by the Florida Housing Finance Corp., is designed to aid unemployed homeowners by paying their mortgages for up to six months, or helping them get caught up on as much as $6,000 in past due payments.
“For the homeowners who qualify, this temporary relief from their mortgage payments will provide some ‘breathing room’ so they can focus on becoming re-employed at a level that will allow them to resume making payments on their own,” Steve Auger, executive director of Florida Housing, said in a statement.
Housing agencies and homeowner help centers reported lots of interest and few hiccups with the online-only application process.
“Needless to say, people were waiting by their computers this morning and have been busy all day,” said Reg Froese, director of homeownership preservation for Neighborhood Housing Services of South Florida.
By midday Monday, about 50 program applicants were referred to NHSSF by Florida Housing, which hands over completed applications to several housing agencies across the state. NHSSF also had about 70 applicants waiting to get help with the program before it launched statewide, Froese said.
Florida Housing spent five months monitoring and tweaking the program during a pilot run in Lee County.
After the pilot, the program parameters and requirements changed. The amount of aid available to homeowners was reduced and participants are now required to contribute at least $70 each month towards their mortgage.
A spokeswoman for Florida Housing said it was too early to gauge the level of interest on the first day of the program’s launch, but data on the number of applications received would be available Friday.
In order to qualify, a homeowner must be unemployed or underemployed, and must be no more than six months behind on mortgage payments. The program is only for primary, or “owner-occupied,” residences.
In South Florida, where unemployment remains in the double-digits, and hundreds of thousands of mortgages are delinquent, interest in the program is likely to be high until the $1 billion in funding runs out.
Ray Payano, a Cutler Bay homeowner who lost his job last year and fell behind on mortgage payments before starting his own business, said he was preparing to apply for the program on Monday.
“I haven’t had a chance to do it yet, but I plan to fill out the application,” he said.
For more information, or to apply, visit www.flhardesthithelp.org. (Peggy: Link this one.)
Copyright © 2011 The Miami Herald, Toluse Olorunnipa. Distributed by McClatchy-Tribune Information Services.
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Top 6 cities where buying beats renting
ORLANDO, Fla. – March 30, 2011 – Cities hard-hit by the housing market crash now offer some of the best buys in real estate – places where it makes more sense to buy than rent, according to a new report from Deutsche Bank. The study measured affordability by the share of income that residents pay to own a home, as well as the cost of owning vs. renting.
Here six cities that topped Deutsche Bank’s list.
1. Atlanta
Rent as a percent of after tax mortgage payment: 151.2 percent
Median home price change, 2006-2010: -33.2 percent
In Atlanta, the average monthly rent is about 50 percent more than the average after-tax mortgage payment. Plus, home prices in Atlanta have dropped nearly 14 percent year-over-year in February, creating a great opportunity for buyers to cash in.
2. Orlando
Rent as a percent of after tax mortgage payment: 137.2 percent
Median home price change, 2006-2010: -51.3 percent
Orlando saw a larger drop in home prices during the past year than any of Florida’s other metro areas, according to a Florida Realtors® report cited by the Orlando Sentinel.
3. Rochester, N.Y.
Rent as a percent of after tax mortgage payment: 136 percent
Median home price change, 2006-2010: 3.6 percent
While housing prices in Rochester – the second-largest economy in New York State – inched up slightly between 2006 and 2010, the city still favors homeownership over renting.
4. Cleveland
Rent as a percent of after tax mortgage payment: 132.6 percent
Median home price change, 2006-2010: -14.8 percent
It costs about 24 percent less to buy a home in Cleveland than it does to rent.
5. Tampa-St. Petersburg
Rent as a percent of after tax mortgage payment: 131.6 percent
Median home price change, 2006-2010: -41.4 percent
Tampa-St. Petersburg was one of the most overbuilt areas during the housing boom, and it ranks ninth in the country for foreclosures. But it’s still an attractive spot for retirees, and with dropping home prices it’s now more affordable to own than rent here.
6. Las Vegas
Rent as a percent of after tax mortgage payment: 125.1 percent
Median home price change, 2006-2010: -56.5 percent
Empty homes and condos blanket Las Vegas, but a comeback is in sight. More than half of sales in Las Vegas are from cash buyers, signaling investors have re-emerged. A strong rental market also means renting out properties still offer a good return.
Source: “10 best cities for home buyers,” CNNMoney.com (March 28, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
Here six cities that topped Deutsche Bank’s list.
1. Atlanta
Rent as a percent of after tax mortgage payment: 151.2 percent
Median home price change, 2006-2010: -33.2 percent
In Atlanta, the average monthly rent is about 50 percent more than the average after-tax mortgage payment. Plus, home prices in Atlanta have dropped nearly 14 percent year-over-year in February, creating a great opportunity for buyers to cash in.
2. Orlando
Rent as a percent of after tax mortgage payment: 137.2 percent
Median home price change, 2006-2010: -51.3 percent
Orlando saw a larger drop in home prices during the past year than any of Florida’s other metro areas, according to a Florida Realtors® report cited by the Orlando Sentinel.
3. Rochester, N.Y.
Rent as a percent of after tax mortgage payment: 136 percent
Median home price change, 2006-2010: 3.6 percent
While housing prices in Rochester – the second-largest economy in New York State – inched up slightly between 2006 and 2010, the city still favors homeownership over renting.
4. Cleveland
Rent as a percent of after tax mortgage payment: 132.6 percent
Median home price change, 2006-2010: -14.8 percent
It costs about 24 percent less to buy a home in Cleveland than it does to rent.
5. Tampa-St. Petersburg
Rent as a percent of after tax mortgage payment: 131.6 percent
Median home price change, 2006-2010: -41.4 percent
Tampa-St. Petersburg was one of the most overbuilt areas during the housing boom, and it ranks ninth in the country for foreclosures. But it’s still an attractive spot for retirees, and with dropping home prices it’s now more affordable to own than rent here.
6. Las Vegas
Rent as a percent of after tax mortgage payment: 125.1 percent
Median home price change, 2006-2010: -56.5 percent
Empty homes and condos blanket Las Vegas, but a comeback is in sight. More than half of sales in Las Vegas are from cash buyers, signaling investors have re-emerged. A strong rental market also means renting out properties still offer a good return.
Source: “10 best cities for home buyers,” CNNMoney.com (March 28, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
Renters need insurance, too,
WASHINGTON – March 30, 2011 – A majority of renters might be overestimating just how much their landlord is responsible for when it comes to insurance.
Only 43 percent of renters in 2006 had insurance, compared with 96 percent of homeowners, according to a 2006 poll by the Insurance Research Council.
Most apartment dwellers aren’t being intentionally irresponsible on this front but simply don’t know that they need it, says Jeanne Salvatore, senior vice president of public affairs at the organization.
“Tip No. 1 for a renter is simply to get the insurance,” says Salvatore.
A few popular misconceptions are the culprits behind renters forgoing coverage for the belongings in their home, industry experts say.
“People say, ‘I don’t think I have a lot of stuff. I don’t want to pay money to insure it.’ They don’t think it’s very valuable,” says Amy Danise, senior managing editor of Insure.com.
But even the sparsest of apartments could have at least $1,000 worth of stuff counting things such as a bed, computer and clothing items. “It would really be a financial disaster to renters to lose all of your things in something like a fire and not have insurance for it. That kind of financial blow can affect you for the rest of your life,” she says.
Many renters also wrongfully assume they fall under the protection of their landlord’s insurance, Salvatore says. Landlord policies would take care of the actual building and common areas in the case of a disaster, but not the belongings of the tenants.
Unlike homeowners, renters policies don’t come with an automatic percentage for covering possessions, leaving the tenants the choice of determining the appropriate amount of coverage.
Renters should photograph belongings and tally up their value to make sure the policy would take care of replacing everything they own.
Beyond the loss of personal possessions, a renter could face litigation if a guest gets hurt in the apartment and the renter is at fault. Renters insurance policies offer liability coverage in much the same way that homeowners policies do, and even cover medical costs.
“If you have a party, and somebody trips on your rug and has to go to the hospital and get an X-ray, they can file a claim and don’t have to sue you,” Salvatore says.
The immediate survival expenses can quickly add up if a fire or other mishap displaces a renter. A renters insurance policy will cover additional living expenses, such as essentials you need to buy and other living expenses that surpass your typical rental costs, Salvatore says.
Renters insurance can cover a lot, but it doesn’t actually cost much. Average costs for the coverage ran about $176 in 2008.
“That’s probably a fancy coffee drink a week,” says Salvatore. So forgo the Starbucks and put the money into one of these policies, which can typically be purchased from the same provider of your auto coverage.
“It’s a small amount to pay for peace of mind,” says 61-year-old Suzette Eaddy of Corona, N.Y., who says she’s had the coverage for many years – and hasn’t had to use it yet, luckily.
© Copyright 2011 USA TODAY, a division of Gannett Co. Inc.
Only 43 percent of renters in 2006 had insurance, compared with 96 percent of homeowners, according to a 2006 poll by the Insurance Research Council.
Most apartment dwellers aren’t being intentionally irresponsible on this front but simply don’t know that they need it, says Jeanne Salvatore, senior vice president of public affairs at the organization.
“Tip No. 1 for a renter is simply to get the insurance,” says Salvatore.
A few popular misconceptions are the culprits behind renters forgoing coverage for the belongings in their home, industry experts say.
“People say, ‘I don’t think I have a lot of stuff. I don’t want to pay money to insure it.’ They don’t think it’s very valuable,” says Amy Danise, senior managing editor of Insure.com.
But even the sparsest of apartments could have at least $1,000 worth of stuff counting things such as a bed, computer and clothing items. “It would really be a financial disaster to renters to lose all of your things in something like a fire and not have insurance for it. That kind of financial blow can affect you for the rest of your life,” she says.
Many renters also wrongfully assume they fall under the protection of their landlord’s insurance, Salvatore says. Landlord policies would take care of the actual building and common areas in the case of a disaster, but not the belongings of the tenants.
Unlike homeowners, renters policies don’t come with an automatic percentage for covering possessions, leaving the tenants the choice of determining the appropriate amount of coverage.
Renters should photograph belongings and tally up their value to make sure the policy would take care of replacing everything they own.
Beyond the loss of personal possessions, a renter could face litigation if a guest gets hurt in the apartment and the renter is at fault. Renters insurance policies offer liability coverage in much the same way that homeowners policies do, and even cover medical costs.
“If you have a party, and somebody trips on your rug and has to go to the hospital and get an X-ray, they can file a claim and don’t have to sue you,” Salvatore says.
The immediate survival expenses can quickly add up if a fire or other mishap displaces a renter. A renters insurance policy will cover additional living expenses, such as essentials you need to buy and other living expenses that surpass your typical rental costs, Salvatore says.
Renters insurance can cover a lot, but it doesn’t actually cost much. Average costs for the coverage ran about $176 in 2008.
“That’s probably a fancy coffee drink a week,” says Salvatore. So forgo the Starbucks and put the money into one of these policies, which can typically be purchased from the same provider of your auto coverage.
“It’s a small amount to pay for peace of mind,” says 61-year-old Suzette Eaddy of Corona, N.Y., who says she’s had the coverage for many years – and hasn’t had to use it yet, luckily.
© Copyright 2011 USA TODAY, a division of Gannett Co. Inc.
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