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INDIANA’S HARDEST HIT FUND INDIANA FORECLOSURE PREVENTION NETWORK
THIS IS YOUR HOME.
WE WANT TO HELP YOU SAVE IT.
INDIANA’S HARDEST HIT FUND INDIANA FORECLOSURE PREVENTION NETWORK
INDIANA’S HARDEST HIT FUND INDIANA FORECLOSURE PREVENTION NETWORK
Indiana Foreclosure Prevention Network (IFPN)
IFPN is a public-private partnership administered by the Indiana Housing and Community Development Authority (IHCDA). It is made up of a broad range of organizations representing counselors, legal assistance providers, government agencies and others dedicated to educating and providing foreclosure prevention resources to financially troubled homeowners.
25 housing counseling agencies across the state: www.877gethope.org/ifpn-partners
Settlement conference facilitators in 20 counties
Foreclosure-related legal services assistance statewide
INDIANA’S HARDEST HIT FUND INDIANA FORECLOSURE PREVENTION NETWORK
What is Indiana’s Hardest Hit Fund?
Indiana received more than $221 million from the U.S. Department of the Treasury to provide mortgage payment assistance to homeowners who are having difficulty making their mortgage payments due to involuntary financial hardships (stuck in the M.M.U.U.D.D.D.)
M.M.U.U.D.D.D. = Military, Medical, Unemployment, Underemployment, Disability, Death, Divorce
INDIANA’S HARDEST HIT FUND INDIANA FORECLOSURE PREVENTION NETWORK
INDIANA’S HARDEST HIT FUND INDIANA FORECLOSURE PREVENTION NETWORK
How Does HHF Help Homeowners?
Three homeowner assistance programs within Indiana’s Hardest Hit Fund: » Unemployment Bridge Program
» Recast/Modification Program
» Transition Assistance Program
The types and amounts of assistance available to homeowners through these programs vary.
Borrowers may receive more than one type of Hardest Hit Fund assistance through IHCDA (total amount of assistance provided may not exceed $30,000).
In cases of no-escrow accounts, IHCDA will pay up to two (2) years of property taxes, homeowner’s insurance, and HOA dues (total amount of assistance provided may not exceed $30,000).
INDIANA’S HARDEST HIT FUND INDIANA FORECLOSURE PREVENTION NETWORK
UNEMPLOYMENT BRIDGE PROGRAM (UBP)
Two types of assistance under the UBP:
Reinstatement with Monthly Assistance: To provide eligible homeowners an opportunity to secure new employment, access training/education to improve employment options, or pursue other long-term options to avoid foreclosure.
Reinstatement Only Assistance: To mitigate the effects of recent employment-related financial hardship.
INDIANA’S HARDEST HIT FUND INDIANA FORECLOSURE PREVENTION NETWORK
Unemployment Bridge Program Eligibility
Involuntary employment-related financial hardship that occurred on or after January 1, 2008, and
For Reinstatement with Monthly Assistance:
a) Monthly mortgage payment must exceed 25% of borrower’s gross monthly household income (excluding unemployment benefits)
b) Household income below 140% of AMI (adjusted)
c) Following reinstatement (if applicable), must be sufficient funds remaining to make 3 monthly payments before reaching $30,000 maximum
For Reinstatement Only Assistance:
a) Maximum front-end DTI of 38%
b) Annual gross household income at or below $150,000
INDIANA’S HARDEST HIT FUND INDIANA FORECLOSURE PREVENTION NETWORK
Recast/Modification Program (RMP)
Two types of assistance under the RMP:
1. Recast = principal reduction followed by servicer re-amortization, to reduce the homeowner’s monthly first mortgage payment to a more manageable level
2. Modification = permanent modification of loan terms, facilitated by principal reduction (if necessary), to reduce the homeowner’s monthly first mortgage payment to a more manageable level
INDIANA’S HARDEST HIT FUND INDIANA FORECLOSURE PREVENTION NETWORK
Recast/Modification Program Eligibility
Involuntary financial hardship that occurred on or after January 1, 2008, including, but not limited to, involuntary loss of or reduction in employment income, significant out-of-pocket medical expenses, death of a contributing household member, or divorce, and
For Recast Assistance (not available for FHA loans):
a) Minimum reduction in household income of 15% (20% reduction in gross receipts if self-employed), or
b) Out-of-pocket medical expenses (emergency or non-cosmetic) greater than or equal to 10% of gross household income (15% of gross receipts if self-employed) for homeowners under the age of 65. For those age 65 or older, medical expenses must be greater than or equal to 7.5% of gross household income, or
c) 7.5% reduction in gross household income for former active duty military who were released due to service-connected illness or injury; or in National Guard or Reserves and were called to active duty
For Modification Assistance:
Mortgage lender/servicer determines additional eligibility (servicers take note)
INDIANA’S HARDEST HIT FUND INDIANA FORECLOSURE PREVENTION NETWORK
Transition Assistance Program (TAP)
For eligible homeowners who are approved for a short sale or deed-in-lieu of foreclosure by their lender/service and leave their home in a marketable condition.
$2,500 to the homeowner to assist with moving and relocation expenses
Up to $5,000 to lenders/servicers to extinguish and release subordinate liens as part of a short sale or deed-in-lieu of foreclosure agreement.
Eligibility:
a) Involuntary financial hardship that occurred on or after January 1, 2008.
b) Short sale or deed-in-lieu transaction must not occur before application of HHF assistance
c) Military personnel who received a permanent change of station order necessitating a short sale or deed-in-lieu are also eligible
INDIANA’S HARDEST HIT FUND INDIANA FORECLOSURE PREVENTION NETWORK
Additional HHF Requirements
Eligible property must be one-to-four-unit, owner-occupied primary residence located in Indiana.
Mobile homes must be on a foundation permanently affixed to real estate owned by the borrower.
Land contracts and open home equity line of credit loans are not eligible
Property may not be abandoned, vacant, or condemned
Borrower may not have liquid assets sufficient to make nine (9) monthly PITI payments, excluding retirement accounts.
INDIANA’S HARDEST HIT FUND INDIANA FORECLOSURE PREVENTION NETWORK
Structure of Assistance
Forgivable, no-recourse, non-amortizing loan
Secured by a junior lien on the property
10-year loan term, forgiven at a rate of 20% per annum in years 6-10.
If sold before full forgiveness, all net sale proceeds up to the full outstanding principal balance will be due and payable to IHCDA
INDIANA’S HARDEST HIT FUND INDIANA FORECLOSURE PREVENTION NETWORK
Multiple Homeowner Entry Points:
Register online at www.877gethope.org, the Indiana Foreclosure Prevention Network (IFPN) website
Call the IFPN helpline at 1-877-GET-HOPE (1-877-438-4673).
Contact a participating housing counseling agency listed at: www.877gethope.org/ifpn-partners
A certified housing counselor will assist the homeowner with the application.
This is a free program. Homeowners should never pay for foreclosure prevention services.
INDIANA’S HARDEST HIT FUND INDIANA FORECLOSURE PREVENTION NETWORK
How to Apply
INDIANA’S HARDEST HIT FUND INDIANA FORECLOSURE PREVENTION NETWORK
Additional Facts
Indiana HHF has provided more than $57 million in assistance to approximately 4,700 homeowners in 91 of 92 Indiana counties
Over 70% of applicants are approved for HHF assistance
More than 300 lenders/servicers are participating
Over $59 million in assistance funds remaining
Program may continue through December 31, 2017
INDIANA’S HARDEST HIT FUND INDIANA FORECLOSURE PREVENTION NETWORK
Help Us Help Homeowners!
Interested servicers may contact our servicer liaison, Ben Fox at (317) 233-5372 or [email protected]
Non-profit counseling agencies may contact our field manager, Tracey Golden at (317) 709-6447 or [email protected]
My contact info:
Mark Neyland, Director of Asset Preservation
(317) 234-6976 or [email protected]
INDIANA’S HARDEST HIT FUND INDIANA FORECLOSURE PREVENTION NETWORK
Questions?