Hardest Hit Fund will Help More Floridians Avoid Foreclosure

This week, Florida Housing announced the expansion of a federal foreclosure prevention program called the “Hardest Hit Fund” throughout the State of Florida.   On Monday, April 18, 2011, Florida homeowners facing possible mortgage foreclosure will be able to apply online for help under the program.

This foreclosure assistance program offers help in two ways:

• The Unemployment Mortgage Assistance Program will provide 6 months of mortgage assistance (up to $12,000) to unemployed or underemployed Florida homeowners.  Homeowners will have to pay 25% of their monthly income or at least $70 toward their monthly mortgage payment.

• Alternatively, the Mortgage Loan Reinstatement Program will pay up to $6,000 to bring a delinquent mortgage current, if the homeowner has returned to work or is recovering from underemployment.

Homeowners may qualify for this program if:

• they have suffered a financial hardship such as job loss and are currently unemployed or underemployed;
• their total household income is below 140% of the area median income;
• they are fewer than 180 days (6 months) delinquent on their mortgage payments;
• their mortgage payments are more than 31% of their gross monthly income;
• the property must be their primary residence;
• they have not had a bankruptcy discharge or dismissal; and
• they have not been convicted of a mortgage-related felony.

The complete eligibility requirements are available on the Hardest Hit website.

The Hardest Hit Fund program in Florida began as a pilot in Lee County last year.  The federal government provided a total of $1.05 billion to the State of Florida, with the last installment being paid in September, 2010.  The 7-month delay in making the program available to eligible Floridians throughout the state was due in large part to “very strong mixed signals” from Governor Rick Scott‘s administration.

Florida Housing hopes the program will help approximately 40,000 struggling homeowners avoid losing their homes in foreclosure.

At PERENICH the law firm, our foreclosure defense attorneys are committed to helping Florida homeowners in distress save their homes or avoid deficiency judgments through loan modifications, short sales, deeds in lieu of foreclosure, and bankruptcy.