The federal government is providing hundreds of millions of dollars to Indiana as part of the Hardest Hit Fund. The mortgage assistance/foreclosure prevention program is intended to help low to moderate income homeowners who are faced with either underemployment or a reduction in hours or people who are underemployed.
The primary goal of the program is to help people who have had a reduction in their income pay their mortgage, and avoid a foreclosure. Money can even help people who are currently going through the foreclosure process. The agency leading and administering the program on a statewide basis is the Indiana Housing and Community Development Authority (IHCDA). Money can be provided to help people pay their mortgage while at the same time they are aggressively trying to secure re-employment in their occupation. Counselors will also work with the applicant to access job and career training that is being made made available through the Indiana Department of Workforce Development. As a key long term goal is to help people find employment in a new occupation.
Some other key conditions, information, details and criteria of the Indiana Hardest Hit Fund (HHF) program are that it will provide only partial mortgage payment assistance to unemployed homeowners who are found to be qualified for aid. The loans are targeted to those state residents who have gone through a job loss that is no fault or neglect of their own. The program is not intended to serve as a charity service, and in fact the homeowner will be required to contribute at most thirty (30%) of their total household income towards making their mortgage payment. The loan from the Indiana hardest hit fund may include paying the balance of the applicants mortgage, however it can’t exceed $1,000 per month after the 30% contribution from the homeowners.
Another good aspect is that funding does not immediately stop after the homeowner finds another job. Once a borrower becomes reemployed or begins to work full time again, the financial assistance and short term loan will still be available for up to 3 months after the borrower secures a new position or their hours resume at their workplace. Of course it is subject to these maximum term limitations. The maximum length of housing assistance provided to the client of the Indiana hardest hit fund will also vary due to the number of payments past due.
The program basically provides homeowners with a loan, that may not need to be paid back, and the money is used to pay their mortgage. All financial assistance that is provided from the program is structured as what is known as a forgivable and non-amortizing loan. After roughly six years, and annually from there on out, the loan is waived, so after 10 years it will not need to be repaid. If the homeowners moves before that time frame then they may need to pay it off.
Depending on what part of Indiana in which the homeowner lives, the amount provided can range from $12,000 to $18,000. It is estimated that almost 20,000 borrowers may be able to receive access to the program, and based on the total amount of the loan the amount of money to help pay their mortgage can be equivalent to about $700 per month.
To learn more or to apply for the Indiana Hardest Hit fund, call your local HUD housing agency in Indiana. Counselors can guide you through this process or other foreclosure prevention tactics. Or dial the Indiana Housing and Community Development Authority (IHCDA) at (317) 232-7777.
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