On Tuesday, Florida will reportedly announce a new program aimed reverse mortgage borrowers in the state who have defaulted on their loans after struggling to remain current on their taxes and insurance.
The Florida Housing Finance Corporation is introducing the Elderly Mortgage Assistance Program as part of its $1 billion Hardest Hit Fund. It’s designed to assist senior homeowners in the state facing foreclosure due to inability to pay taxes, insurance or association dues following the complete draw down of home equity through a reverse mortgage.
Florida Housing has been discussing the program for about a year ahead of its imminent expected launch, reports the Palm Beach Post, and it’s expected to help around 1,250 senior homeowners in the state.
Florida Housing’s Board of Directors approved up to $25 million in Florida HHF program dollars to be used to aid reverse mortgage borrowers, according to its website. The Board’s June 2013 agenda previously estimated expenditures of approximately $50 million to assist around 5,000 senior homeowners.
Through the program, Florida Housing will work with reverse mortgage servicers, the Department of Elder Affairs, Area Agencies on Aging, AARP, and other stakeholders to provide Hardest Hit Funds on behalf of borrowers to prevent foreclosure.
“For those senior homeowners who show an ability to afford their TIA expenses, HHF funds may be used to repay the servicer for amounts that have been advanced, thus reinstating the arrearage on their Reverse Mortgage,” said the June agenda. “For those senior homeowners who show an ability to afford their TIA expenses, HHF funds may be used to repay the servicer for amounts that have been advanced, thus reinstating the arrearage on their Reverse Mortgage.”
Applying to the Hardest Hit Fund program is free of charge to consumers. Click here for more information on program eligibility.
Written by Alyssa Gerace