TALLAHASSEE, Fla. – April 6, 2011 – About 40,000 struggling Florida homeowners may soon get federal help making mortgage payments in an effort to help stave off foreclosure.
The Florida Housing Finance Corp. announced Tuesday it is expanding the federal Hardest Hit Fund statewide.
The $1 billion fund will help eligible homeowners make mortgage payments for up to 6 months. Homeowners must be unemployed or their housing cost must be 31 percent or more than their income. Delinquent homeowners who are now able to start making payments could also get help getting current on their loans.
First announced on Feb. 19, 2010, by the U.S. Department of the Treasury, the fund provides federal money to states hardest hit by the aftermath of the housing bust. To date, $7.6 billion has been allocated to 18 states and the District of Columbia.
In October, a pilot Florida program began in Lee County. The expanded statewide program will begin accepting website applications at 9 a.m. April 18.
Cecka Rose Green, spokeswoman for the housing group, said she recommends homeowners act quickly.
“A billion dollars sounds like a lot of money,” she said. “But there are hundreds of thousands of people who probably need help. The money will run out.”
Participants must be owners of single-family homes who are no more than 180 days delinquent on their mortgage payments.
The program will be slightly different than the pilot program in Lee County. Homeowners will now have to contribute at least $70 per month or 25 percent of their monthly income. The pilot program paid 100 percent of homeowners’ mortgage payments. And the assistance will only last up to six months now, down from 18 months.
Previously, homeowners were eligible for up to $35,000. The assistance amount is much lower now, though.
There will be two programs, one for the unemployed and one to help homeowners who’ve found work get caught up on payments.
The Unemployment Mortgage Assistance Program will provide up to $12,000 to pay monthly mortgage and escrowed mortgage-related expenses for up to 6 months, or until the homeowner can resume making mortgage payments.
The Mortgage Loan Reinstatement Payment Program will provide up to $6,000 to bring the homeowner’s mortgage current, if the homeowner is able to make mortgage payments.
Homeowners can apply for assistance through the Florida Finance Corporation website.
Copyright © 2011 Tampa Tribune, Fla. Shannon Behnken. Distributed by McClatchy-Tribune Information Services.
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