November 25, 2013
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Florida Housing Finance Corporation

The process for homeowners to apply for the Florida Hardest-Hit Fund Principal Reduction (HHF-PR) program closed on Wednesday, October 2, one week after reaching its goal of 25,000 applications. The online application process opened on the previous Wednesday, September 25. Upon completion, each application was assigned to an HHF-PR advisor agency, where staff began the process of determining eligibility for those who applied to receive assistance from the program. Homeowners who are deemed eligible and whose mortgage servicer has agreed to accept HHF-PR funds can receive up to $50,000 to reduce the principal balance of their first mortgage.
Once a homeowner has been deemed eligible to receive HHF-PR financial assistance, the first mortgage loan servicer will be contacted to effectuate the transmittal of the funds. Once the funds have been transmitted and applied to the principal of the loan, the loan can be recast (re-amortized) to yield a lower monthly mortgage payment for the homeowner. For those homeowners who have government-backed mortgages, the loan will need to be refinanced to lower the monthly payment. For a complete description of the program and terms of assistance, click here to be connected to the website; the FAQs, which completely detail the program, can then be downloaded or viewed.
First announced on February 19, 2010, by the US Department of the Treasury (Treasury), the "Housing Finance Agency (HFA) Innovation Fund for the Hardest-Hit Housing Markets" (HFA Hardest-Hit Fund) provides federal funding to states hardest hit by the aftermath of the burst of the housing bubble. A total of $7.6 billion has been infused into the HFA Hardest-Hit Fund for 18 states and the District of Columbia; Florida's allocation stands at more than $1 billion. The goal is to help create sustainable homeownership in our state. The HHF-PR program joins the other Florida HHF programs: Unemployment Mortgage Payment (UMAP) and Mortgage Loan Reinstatement (MLRP) programs.