The Sun Sentinel reports that beginning 9:00 a.m. tomorrow “underwater borrowers who missed out last year on a state program that reduces mortgage balances will get another chance.” The Florida Hardest-Hit Fund Principal Reduction Program will again be accepting applications online: PrincipalReductionFLHHF.org
From the Sun Sentinel article:
The Florida Housing Finance Corp. launched the program in September but closed it a week later after reaching 25,000 applications. Once Florida Housing nears the $350 million limit, it again will cut off applications.
“But at this point, I don’t think that’s something homeowners need to worry about,” spokeswoman Cecka Green said Tuesday. The agency said it has distributed $102 million so far in principal reduction funds to 2,400 Florida homeowners. It originally said it expected to help 10,000 homeowners.
The program provides up to $50,000 to borrowers who owe at least 125 percent more than their properties are worth. Eligibility requirements remain the same.
According to the Florida HHF-PR Program website: Eligibility requirements include, but are not limited to, the following:
- Must be a Florida resident and a legal US resident/legal alien;
- Must occupy property as primary residence;
- Must be current on the monthly mortgage payment (cannot be 60 or more days late on the first mortgage within the past 24 months);
- Property must have been purchased prior to January 1, 2010;
- Must have an unpaid principal balance (UPB) that does not exceed $350,000 for the first mortgage;
- Loan-to-value for the first mortgage must be greater than 125%; and
- Total household income (including all persons living in the home age 18 years and older) must be less than 140% of the area median income (AMI) as provided by the US Department of Housing and Urban Development (HUD).
Previous applicants who were deemed ineligible and wish to have their application re-evaluated should not begin a new application. “To have your application re-evaluated, please contact your original HHF-PR Advisor (advisor). If you do not know who your advisor is, call the toll-free HHF Information Line at 1-(877) 863-5244 to speak with an agent.”
In February 2010, the Obama Administration created the “Hardest Hit Fund” to distribute $1.5 billion from the TARP program to five states (Arizona, California, Florida, Michigan, and Nevada) most affected by unemployment and foreclosure during the crash. Thirteen additional states have since been added (North Carolina, Ohio, Oregon, Rhode Island, South Carolina, Alabama, Washington DC, Georgia, Illinois, Indiana, Kentucky, Mississippi, New Jersey, and Tennessee) and the administration has committed $7.6 billion through 2017 to help participating states aide struggling homeowners. Florida has received $1 billion and says it has spent $480 million of the money to date.