In a release on August 11, HUD announced an additional $3 Billion in funding for targeted homeowner assistance. The "Hardest Hit Fund" was announced in February of this year, in an effort to stave off further market erosion and in hopes of stabilizing an economy still shaky from the high unemployment and foreclosure rates. Florida, one of the hardest hit states (and also one of the biggest bubbles), is slated to receive 12% ($238,864,755) of these funds for homeowners still struggling to make payments on their mortgages.
OBAMA ADMINISTRATION ANNOUNCES ADDITIONAL SUPPORT FOR TARGETED FORECLOSURE-PREVENTION PROGRAMS TO HELP HOMEOWNERS STRUGGLING WITH UNEMPLOYMENT
Treasury's Hardest Hit Fund Will Provide $2 Billion of Additional Assistance in 17 states and the District of Columbia; HUD to Launch a New $1 Billion Program to Help Unemployed Borrowers in Other Areas
So, what does it take to qualify? According to HUD, who will be contributing $1 billion to the program:
HUD Emergency Homeowners Loan Program
This new program will complement Treasury's Hardest Hit Fund by providing assistance to homeowners in hard hit local areas that may not be included in the hardest hit target states. Those areas are still being determined.
The program will work through a variety of state and non-profit entities and will offer a declining balance, deferred payment "bridge loan" (zero percent interest, non-recourse, subordinate loan) for up to $50,000 to assist eligible borrowers with payments on their mortgage principal, interest, mortgage insurance, taxes and hazard insurance for up to 24 months.
Under the program, eligible borrowers must:
- Be at least three months delinquent in their payments and have a reasonable likelihood of being able to resume repayment of their mortgage payments and related housing expenses within two years;
- Have a mortgage property that is the principal residence of the borrower, and eligible borrowers may not own a second home;
- Demonstrate a good payment record prior to the event that produced the reduction of income.
HUD will announce additional details, including the targeted communities and other program specifics when the program is officially launched in the coming weeks.
If You, or Anyone You Know Is Having Trouble Making Their Mortgage Payments
Stay tuned for updates on this program--September 1st is the projected rollout. If you or anyone you know would like to discuss your options with a seasoned professional--call me for a FREE consultation!
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Loretta J. Buckner
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