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New Efforts to Trim Down Foreclosure Listings in Florida

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By : John Cutts    99 or more times read
Both private and public entities are carrying out new efforts to help slow down the surge in foreclosure listings in Florida.

Foreclosures in Florida had a resurgence in May after slowing down significantly in the previous month. After falling by more than 18 percent in April month over month and by more than 25 percent year over year, foreclosure filings in the state jumped up in May by nearly 5 percent to 50,685. Of these filings, 21.6 percent or 10,941 units became foreclosed houses for sale.

Based on the percentage of residential units foreclosed by state, Florida was still among the top three foreclosure-clobbered states in May, ranking third again on foreclosure rate charts.

Among new efforts to help distressed borrowers prevent their homes from going into foreclosure listings is the plan by the Florida Housing Finance Corporation to spend the $418 million it received from the Obama administrationís $1.5-billion hardest-hit fund in helping unemployed and underemployed borrowers keep their homes as they look for jobs.

The housing agency proposed to spend $353 million to help distressed borrowers pay up to 9 monthly amortizations, $40 million to help qualified first time home buyers make their down payment, and $25 million to provide legal assistance to troubled homeowners who are resolving their mortgage problems through loan modification, mediation or short sale.

Another new foreclosure prevention effort is the decision by Fannie Mae and Citigroup to delay foreclosure actions on distressed homes in areas affected by the BP oil spill by three months. The Gulf Coast spill has triggered concerns about the impact of oil-hit coastlines on the tourism and fishing industries in the coastal region.

The extension of the completion deadline for home purchases with federal tax credits is another way to help the Florida housing market absorb its foreclosure inventory. Previously, homebuyers have until June 30 to close their purchases. Under the new plan, buyers now have until September 30 to take title to their homes.

With these new efforts, Florida residents hope that the surge in foreclosure listings would slow down.

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