The federal government created the Hardest Hit Fund to assist the many homeowners struggling to make their mortgage payments. The program was made available in 19 of the nation's states. Florida was one of the first states to be approved for the federal program.

However, while Florida homeowners have been particularly "hard hit" and struggle financially to make the payments on their mortgages, a new report shows that Florida's Hardest Hit program rejects most Florida homeowners who seek assistance.

Although, a spokesperson from the program said that the number of applicants has been disappointing, according to the report, more than 10,000 Florida homeowners have applied for mortgage relief from Florida's $1 billion share of the federal money. In fact, the rejection rate is 80 percent, with only 52 approved applications in Florida to date.

The following are some of the reasons why Florida applicants have been denied mortgage assistance from Florida's Hardest Hit program:

  • Unemployed applicants were considered at fault for losing their jobs
  • Working individuals were not considered "underemployed"
  • Applicants were more than six months behind on their mortgage payments
  • Applicants had enough income to spend on their housing expenses
  • Applicants' income far exceeded the local median income
  • The value of the house was less than half of the total mortgage amount
  • Applicants had unpaid principal of more than $400,000

Apparently the people in charge of reviewing the applications in Florida and who make decisions about who qualifies for the funds believe that the funds should be dispersed only to those who have the best chance of keeping their homes.

For the other thousands of people who have been rejected by Florida's Hardest Hit program, but who are unable to make their mortgage payments, there are other options. Chapter 7 and Chapter 13 bankruptcy may be available to those facing foreclosure and who have been rejected for mortgage assistance in Florida.

Source: The Orlando Sentinel, "Mortgage help reaches few Floridians," Mary Shanklin, 21 June 2011