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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 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

http://www.877gethope.org/ifpn-partners




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



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).


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.


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


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


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)


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


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.


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


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.


How to Apply

http://www.877gethope.org/





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


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]

mailto:[email protected]




Questions?

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