Low-Income People Survive Florida Foreclosures
It has always been assumed that those who could barely pay down payments, the poor people, would immediately succumb to Florida foreclosures.
But not in the counties of Pinellas and Hillsborough. Since 2006, about 1,000 people who belong in the very low and moderate income levels purchased homes in the counties of Pinellas and Hillsborough with assistance from the government.
Out of the estimated 1,000 homeowners belonging to the very low and moderate income levels, only 10 have been victims of Florida foreclosures. The numbers are significantly small compared with the combined total foreclosure cases of 62,112 that were filed in both counties from January 2006 to January 2009.
Millions of homeowners have lost their properties to foreclosures or are in the brink of losing their distressed properties. Many of these homeowners have acquired properties the value of which exceeded their income, finance their acquisitions with subprime, adjustable-rate mortgage loans that became too expensive or loans with interest only that kept them from getting any equity.
Unlike other homebuyers, first-time borrowers who belong in the low income level are not allowed to purchase more properties than they could afford. This may be one of the reasons why few of them fell prey on Florida foreclosures.
The government’s programs that provide down-payment assistance to poor people placed stringent requirements on homebuyers. These programs require compulsory classes and counseling to educate homebuyers how to handle their finances so as not to live beyond their means, keep their properties and avoid Florida foreclosures.
Housing officials encouraged people who belong in the very low and moderate income levels to be responsible in order to avoid financial problems and Florida foreclosures.
Meanwhile, one homeowner out of 247 who availed of the down-payment assistance program, have been forced into foreclosure in Tampa. Additionally, three foreclosures were reported out of the almost 411 homeowners who have been helped by the program in Hillsborough.
According to Florida’s housing and community development manager Tom de Yampert, all those financial counseling and classes attended by poor people have taught them that if they have problems with their mortgages, they should call early for assistance.
Furthemore, de Yampert pointed out that people who belong in the very low and moderate income levels handle minimum-wage positions or have multiple jobs which make them better able to cope with the recession and foreclosure crisis.
