In another federal effort to assist unemployed homeowners save their homes, part of the Dodd-Frank Wall Street Reform bill was to set aside $1 billion to assist the jobless.
The problem is, only half of those funds will be distributed thanks to the very strict application rules.
The Housing Department, which is approving the applications, says only 10,000 to 15,000 of the 100,000 applications will be approved. The effort was supposed to help those who lost more than 15% of their income due to unemployment within the last 12 months or due to their own illnesses. The applicants also had to show that they were at least 90 days delinquent and could resume payments if they found work.
The problem is that many of the applicants have been unemployed for longer than 12 months, were too far behind in their payments, or they have to take care of an ill family member. There were no provisions for these types of scenarios.
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