Fed Help for Those Facing Florida Foreclosure Starts Today: South Florida Here’s How To Apply for Hardest Hit Fund

Posted By on April 19, 2011

Starting today, Florida homeowners facing foreclosure can apply for federal assistance via the Housing Finance Agency Innovation Fund.  This program was set up to assist the hardest hit housing markets.  This is something that we’ve posted about before; this new program is more commonly known as – the “Hardest Hit Fund.”  However, this is not a magic pill:

  • Will this help every Florida homeowner facing a possible foreclosure? No.
  • Will it help Florida homeowners who have been victimized by wrongful foreclosure?  No.
  • Will the Hardest Hit Fund solve all your foreclosure problems, even if you qualify for it? No.

Of course, receiving help from the government isn’t such a bad thing.  It’s just not enough.

Any Florida homeowner dealing with a foreclosure, should seek legal advice to deal with the complexities associated with a foreclosure.  It would be great if one government solution could solve all the problems in the current crisis, but that’s simply not the case.  We are facing unprecedented legal issues now.

Apply Today for Help Paying Mortgage for Up to 6 Months

As of April 19, 2011, you can apply with the Florida Housing Corporation for federal monies to help you fight the wolves at the door with their threats to foreclose on your Florida home. Once you apply, the state agency will review your application to decide if you can receive cash for up to 6 months to pay toward your house payment – and determine the amount you are eligible to receive (there’s a cap).

Florida’s Hardest Hit Fund Gets Big Chunk of the Fed Monies

There’s $9,000,000,000 (nine billion dollars) set aside by the federal government for the Hardest Hit Fund. It’s expected to help around 40,000 families who are either without a job or not much of one (underemployed).

The big pot of money has to be shared between Florida and 17 other states. It’s not an even split, though: Florida, which everyone recognizes has one of the biggest foreclosure crisis, gets $1 billion to distribute to its citizens.

How to Apply – Are You Eligible?

You apply online.  Go here to complete the Hardest Hit Fund online application form.

The applications are being taken and the checks will be distributed to Floridians via the Florida Housing Finance Corporation.  According to its website:

An eligible homeowner:

•Must be a Florida resident;

•Must occupy property as primary residence (the property cannot be vacant, abandoned or rented);

•Borrower/co-borrower must be unemployed or underemployed through no fault of his/her own, which makes the first mortgage unaffordable;

•Must have documented total household income at or below 140% of the area median income (AMI), adjusted for household size;

•Must have an active checking/savings account that can be debited by the ACH method of funds transfer;

•May not have unencumbered assets of $5,000 or more, 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.

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