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Florida Housing Launches Hardest-Hit Fund Program Statewide

Unemployed or underemployed homeowners in Florida having difficulty paying their mortgages can apply for financial assistance from the ""Florida Hardest-Hit Fund"":https://www.flhardesthithelp.org/ beginning April 18, according to an announcement from ""Florida Housing Finance Corporation"":https://www.flhardesthithelp.org/.

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Now available to troubled homeowners in all 67 counties in the Sunshine State, the program follows a pilot program ""launched in October"":http://dsnews.comarticles/florida-launches-pilot-program-for-unemployed-homeowners-2010-10-22 for Lee County homeowners.

""We're now in the position to offer this financial assistance statewide to the people out there who are desperately struggling to stay in their homes,"" said Steve Auger, executive director of Florida Housing.

""For the homeowners who qualify, this temporary relief from their mortgage payments will provide some ‘breathing room,' so they can focus on becoming re-employed at a level that will allow them to resume making payments on their own,"" he explained.

The program was designed to distribute money the state received from the federal government's Hardest Hit Fund.

Previously available to homeowners 90 or fewer days delinquent on mortgage payments, the state agency

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opened the eligibility requirements for the ""program in November"":http://dsnews.comarticles/florida-housing-extends-eligibility-for-hardest-hit-fund-pilot-2010-11-23, allowing homeowners who are up to 180 days delinquent to qualify for the service.

The Florida Housing Finance Corporation has made a few additional changes to the program benefits for the statewide roll-out.

The Unemployment Mortgage Assistance Program (UMAP) now provides up to $12,000 to pay monthly mortgage and escrowed mortgage-related expenses for up to six months or until the homeowner can resume making mortgage payments. In addition, homeowners in the UMAP must pay 25 percent of their monthly income toward their monthly mortgage payment with a minimum payment of $70 per month.

The Mortgage Loan Reinstatement Payment Program (MLRP) now provides up to $6,000 to bring the homeowner's past-due first mortgage current if the homeowner can show the ability to resume making mortgage payments on their own.

UMAP and MLRP program funds are in the form of a zero percent, deferred-payment loan, and the loan can be forgiven over a five-year period at a rate of 20 percent each year.

""There are several reasons for these changes to the program,"" said David Westcott, director of homeownership programs at Florida Housing. ""Most importantly, the need for this program continues to grow, and we want to assist as many homeowners as possible.""

Westcott added, ""These changes could allow Florida Housing to provide financial assistance to nearly 40,000 homeowners statewide - twice as many as we previously estimated could be helped.""

Florida's total allocation from Treasury for Hardest-Hit Fund programs currently stands at more than $1 billion.

About Author: Heather Cernoch

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