< Back to Tax Talk Issue Directory

Homeowner Survival Strategies: Financial Relief Resources

Many homeowners face challenging times attempting to prevent or deal with the possibility of foreclosure. Many are experiencing higher insurance costs, property taxes, and loss of income due to layoffs. Did you know that resources are available to assist homeowners impacted by recent changes in the economy? Below is a summary of resources available including federal income tax relief, pre-foreclosure assistance, and foreclosure assistance.

Federal Income Tax Relief

Congress passed the American Housing Rescue and Foreclosure Prevention Act of 2008 which was signed into law by President Bush in July 2008. The bill provides an additional standard deduction (up to $500; $1,000 for joint filers) for state and local real property taxes. This provision applies for those who claim the standard deduction on their 2008 federal tax return. Visit the current legislation section of the Speaker of the U.S. House of Representatives website at http://www.speaker.gov/legislation/ for additional information.

Pre-foreclosure Assistance

Florida attorneys have teamed up to help Floridians facing foreclosure. A statewide effort between The Florida Bar, The Florida Bar Foundation, Florida Legal Services Inc., and the Real Property Probate and Trust Law Section of the Florida Bar launched Florida Attorneys Saving Homes (FLASH). FLASH has a toll-free hot line (866-607-2187) in which callers are referred to pro bono attorneys after answering a few initial questions. The attorney then negotiates with lenders on behalf of the homeowners with the intent of allowing the homeowner to remain in the home and avoid foreclosure.

Foreclosure Assistance

The Palm Beach County Department of Housing and Community Development offers many programs via the State Housing Initiative Partnership. One such program is foreclosure assistance, which provides financial assistance to very low and low income homeowners facing foreclosure due to an unexpected loss of income by a primary wage earner. The goal of the program is to avoid foreclosure by paying up to six (6) delinquent mortgage payments or $7,500 to assist with bringing the mortgage current. The property must be the primary residence of the homeowner. Information on the foreclosure program and other housing programs can be found at: http://www.pbcgov.com/hcd .

The City of West Palm Beach has joined with national organizations and banks to create a foreclosure assistance center. Options to assist distressed homeowners available through the center include:

• Direct payment to the lender of past due amounts up to $10,000.00.
• Negotiation with the lender for repayment agreements on existing loans.
• Purchase of their home should their current lender agree to a “Short Sale” arrangement.
• Purchased homes available through the city’s affordable housing program.
• Assistance with finding employment for those who have lost their jobs.
• A Credit Recovery Plan to help them repair damaged credit.

In order to receive any benefits from the Center, homeowners must agree to register in the City’s Housing Counseling and Education Program for a minimum of 12 months. More information on the program can be found at http://www.wpb.org/housing/foreclosure.php .

An all-volunteer group of experts, civic and government leaders has organized a Palm Beach County foreclosure assistance group. Home Ownership Promotes Economy (H.O.P.E.) will hold a county-wide workshop on September 22, 2008. The workshop location is Old School Square in Delray Beach (51 N. Swinton Ave., Delray Beach, FL 33444) from 10am to 3pm. The workshop will provide those interested an opportunity to meet with mortgage experts one-on-one for solutions on how to save their home. Additional information can be found at http://www.mariasachs.com.

Although Florida ranks second in the nation for foreclosure filings as of July 2008, there are many resources to prevent foreclosure proceedings or assist families in the foreclosure process. For a more comprehensive foreclosure assistance contact list contact the United Way of Palm Beach County ( http://www.unitedwaypbc.org ).