Foreclosure prevention and mortgage assistance in Orlando
The City of Orlando created a program that will provide a cash grant or one time financial assistance that can be used to help residents who need help avoiding a foreclosure. There are strict criteria that need to be met in order to qualify for help.
The program was not intended to be a charity type program, and it can only help people who are struggling due to unforeseen circumstances. Some of the possible reasons could include a loss of income (from unemployment or reduction in hours), medical or health emergency, divorce, or some other unplanned for crisis.
The total amount of financial assistance provided to help pay a mortgage will max out at $7500, and it is based on the applicant’s total household income. The amount provided can range in a scale as well, which will be based on income. So in other words the higher a homeowner’s income, the smaller dollar amount of mortgage assistance they may be able to qualify for.
Basically the money is provided in a loan, but it is a zero (0) percent, deferred loan. So this means it can be thought of similar to a grant or some may even call it free money! The reason being is the loan is provided at zero percent interest.
If the cash provided does not meet the homeowners need, and in the event of foreclosure, the loan/debt and the lien will be considered terminated by the city of Orlando. So the homeowner will not owe anything. In addition, upon sale of the property or if the owner chooses to refinance the property into a new, more competitive mortgage or home loan, then the City of Orlando may recapture the entire amount of assistance from the homebuyer. So that still means the homeowner will not be out of pocket any funds, but rather the sale or refinance of the property pays the loan off.
The Orlando foreclosure prevention program works on a first come first serve basis. Financial assistance the services that are available under the Foreclosure Prevention Program are only available to income eligible homeowners and city residents.
Those Orlando homeowners who are requesting grants or financial assistance from the program to help pay their home mortgage must reside in the home and they also must be able to provide evidence of the need for the cash assistance. Just some of the criteria include written verification of employment, income, and any benefits the applicant currently receives will need to be obtained for all applicants. In addition, potential applicants must also demonstrate their ability to continue to pay and maintain their mortgage payments after the services have been rendered.
To get more information, apply for the program, or to get additional help, Orlando has partnered with qualified HUD housing counseling agencies and other non-profits in the region. To schedule an appointment with one of the participating mortgage counselor and to apply, call one of the following non-profit housing agencies. Mortgage and Credit Center - (407) 654-8804 or HANDS of Central Florida - (407) 447.5686.