A $7.6 billion federal effort to help unemployed homeowners avoid foreclosure will soon be running in all 18 states sharing the funds.
The Hardest Hit Fund, announced by President Obama a year ago and expanded to more states since then, largely targets lower-income jobless or underemployed homeowners. Those eligible receive forgivable loans for mortgage payments, or they may tap other programs, such as one to help them get current on mortgage payments. Generally, the loans are forgiven after five years if borrowers stay in the homes and keep current on payments.
The government targets areas hit hard by unemployment or fallen home prices. States’ programs have different rules and benefits.
In Florida, the most a homeowner will get is $35,000.
An eligible Florida homeowner:
•Must be a Florida resident;
•Must occupy property as primary residence (the property cannot be vacant, abandoned or rented);
•Must have suffered an approved hardship that makes the first mortgage unaffordable;
•Must have documented total income at or below 140% of the area median income (AMI), adjusted for household size (in Lee County, the total income for a household of four cannot be more than $86,240);
•May not have unencumbered assets of $5,000, or three times the current monthly mortgage payment (whichever is greater);
•Cannot have a bankruptcy that has not been discharged or dismissed; and
•Cannot have been convicted of a mortgage-related felony in the last 10 years.
The current mortgage:
•Must be serviced by a participating lender, who agrees to accept payments on behalf of the homeowner;
•Must not be more than 180 days past due at the time of application;
•Must have been originated on or before January 1, 2009; and
•Must have an existing principal balance of less than $400,000.
The Florida Hardest Hit Fund currently operates only in Lee County under a pilot program in preparation for a statewide rollout expected in March.
More information can be found by going to Florida's Official hardest hit website
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