By Josh Salman | Herald-Tribune |
“Florida’s $1 billion program to help prevent foreclosures in the wake of the housing crisis continues to diversify.
The Florida Housing Finance Corp. announced Tuesday it would earmark $25 million of its Hardest-Hit Fund to help elderly homeowners with reverse mortgages.
The agency says the new program will help recession-battered Floridians hang onto their retirement home even if they’ve fallen behind on property tax, homeowner’s association or insurance payments.
“There are thousands of reverse mortgages in Florida that are in delinquency,” said Florida Housing Executive Director Steve Auger. “It’s now time to help homeowners who are in the twilight of their years, on a fixed income, experiencing a hardship and facing foreclosure. This new program should help them sustain their homes.”
Homeowners who meet specific qualifications can begin applying for the state’s new reverse mortgage help immediately.
Those eligible will receive a two-year, forgivable loan of up to $25,000.
The funds will be distributed to the mortgage servicer, on the homeowner’s behalf, in a lump sum to repay property-related expenses that have been advanced by the lender like property taxes, flood insurance and association fees. The funds may also be used to pay upcoming property-related expenses for up to 12 months.
Reverse mortgages allow aging homeowners to tap into their equity for cash flow – using their house as collateral. But most reverse mortgages require the borrower to pay their property-related expenses on time.”