Financial Help for Owners of Troubled Florida Homes

Published by nora | Filed under Buyer / Seller Tips, Market Trends, Miscellaneous, Mortgage / Finance, Real Estate

If you’re underemployed or unemployed and you’re looking for a way to lighten your mortgage load while you’re searching for a better job, then the launching of the Florida Hardest Hit Fund program is good news for you.

This is different from the home modification program that was launched in early 2009.  The modification program seeks a reduced monthly payment for the entire term of the mortgage – over many years – while this Hardest Hit Fund program was designed to help a troubled homeowner for only a short period of time – only up to six months – while the borrower is looking for a higher-paying job. This program also targets only the first mortgage.

Additionally, the Hardest Hit Fund program is not the same across the U.S. and is not available in all states. Only those hardest hit states were given funds to be spent for direct assistance to individual homeowners at risk of losing their homes to foreclosure. The recipient states were also given the freedom to design a strategy they think is the best for their troubled homeowner constituents.

If you’re qualified for the program, you can be helped through one of two ways:

•     Six months of your mortgage payments, up to $12,000, will be paid.
•     Your past-due monthly amortizations, up to $6,000, will be paid.

Under these two schemes, the financial assistance is provided as a zero-percent deferred-payment loan with debt forgiveness. The loan is forgiven if the monthly amortizations are faithfully paid on time over the term of the loan, which is five years. It’s immediately payable and collectible if the home is sold before the five-year term is over.

In addition, the first scheme – the six-month payment assistance –  requires the homeowner to spend 25 percent of his or her monthly income for the monthly mortgage payment, with a minimum monthly share of $70.

You’re eligible for the Hardest Hit Fund financial assistance if you pass the following conditions:

• You’re a resident of Florida.
• You’re unemployed, underemployed, or experiencing a financial hardship due to circumstances outside your control.
• Your mortgage is not delinquent by more than 180 days.
• The house is your primary residence and it’s the only house you own.
• Your house is located in Florida.
• Your monthly mortgage payment is more than 31 percent of your household income.
• Your family income is lower than 140 percent of your area’s median household income.
• You don’t have an ongoing bankruptcy case in court.
• Your mortgage was taken out on or before January 1, 2009.
• Your outstanding principal balance is not more than $400,000.
• Your total mortgage loan-to-value is less than 200 percent.
• Your mortgage is being serviced by a lender or servicer participating in the program.
• You’ve not been convicted of a mortgage felony in the past ten years.

If you’re qualified, start applying through the website FLHardestHitHelp.org, which was designed to accept applications for this program for free. Make sure you type the right URL, as there have been copycat websites made to deceive applicants and collect fees.

In case you’re not qualified for this program, and you’ve decided to resort to Short Sales, contact Tampa4U.com for a faster Short Sale deal.