The Florida Hardest-Hit Fund program was recently unveiled to help residents of the Sunshine State who are struggling to pay mortgage installments. Offered through the Florida Housing Finance Corporation, this program offers assistance to homeowners facing foreclosure.

The Florida Hardest-Hit Fund offers two programs including: Mortgage Loan Reinstatement Program (MLRP) and Unemployment Mortgage Assistance Program (UMAP). MLRP is designed to help residents that require financial help to pay off past due loan payments, while UMAP offers assistance to homeowners who are unemployed or underemployed.

While this program offers financial assistance to help Floridians avoid foreclosure, many who need help the most do not meet qualification guidelines. Florida Hardest-Hit Fund eligibility criteria include three categories and applicants must qualify for each. These include: property eligibility, household eligibility, and mortgage eligibility.

Another consideration is that mortgage servicers can deny applicants\’ requests even if they meet all eligibility criteria set forth by the Hardest Hit program. This program does not guarantee bank approval, so homeowners should contact their lender and determine if they participate in the program and if their application will be accepted.

Oftentimes, bank loss mitigators handle applications for Hardest-Hit funding. Homeowners who are currently in preforeclosure have most likely been assigned to a loss mitigator. If not, homeowners will need to contact their lender to discuss the application process.

In addition to the three categories, homeowners must meet eligibility criteria of nine factors and two exclusions. Applicants must be a legal citizen or legal alien of the U.S. and a Florida resident. The property must be used as their primary residence.

Homeowners that apply for help through UMAP must be unemployed or underemployed. Their pretax household income must fall 140-percent below Florida\’s median income level, which was last reported at $45,631. Overall mortgage debt must exceed 31-percent of total household pretax income.

Florida Hardest-Hit Fund requires all applicants to hold a checking or savings account that allows ACH payments to be debited. Homeowners who have filed personal bankruptcy or convicted of a mortgage-related felony within the past 10 years will not be accepted into the program.

FHHF only offers assistance for owner-occupied residential properties. These can include: single family residences, townhomes, condominiums, mobile or manufactured homes, or dwellings consisting of up to four units; one of which is occupied by the homeowner.

Hardest-Hit funds are only offered to qualified homeowners whose mortgage servicer is participating in the program. Default payments cannot exceed 180 days past due. The balance on the first mortgage cannot exceed $400,000 and the loan must have originated on or prior to January 1, 2009.

Florida homeowners can apply directly at the Florida Hardest-Hit Fund website at FLHardestHitHelp.org. Prior to submitting applications, homeowners should organize financial records and have access to total household wages, past due balances on first and second mortgages, bank account and routing number, and current personal tax return.

UMAP provides up to $12,000, while MLRP provides a maximum of $6,000 to qualified applicants. Funds must be used to resolve past due payments of the first mortgage.

Homeowners who find applying for Florida Hardest-Hit Fund confusing or uncertain if they will qualify may find it beneficial to obtain HUD housing counseling. This program offers complimentary counseling services to homeowners facing foreclosure. However, government budget cuts may make it inaccessible in the near future, so those in need of help should take advantage of services while they can.

Author Bio: Simon Volkov is a California real estate investor who writes about current events within the market. Topics include: Florida Hardest-Hit Fund, Short Sale Act of 2011, Mortgage Standards Reform, and the scandalous ForeclosureGate. Stay abreast of current trends by visiting www.SimonVolkov.com.

Category: Real Estate
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