INDIANAPOLIS- The Indiana Foreclosure Prevention Network (IFPN), a statewide multi agency collaboration, committed to actively addressing Indiana’s foreclosure crisis through a variety of methods, is offering another tool for troubled homeowners throughout Indiana.
The U.S. Department of the Treasury established the Housing Finance Agency Innovation Fund for the Hardest-Hit Markets (Hardest Hit Fund) to provide financial assistance to families in the states most impacted by the downturn of the housing market.
Indiana was awarded over $221 Million to help unemployed homeowners pay a portion of their mortgage. Under the Hardest Hit Fund Unemployment Bridge Loan Program, Building the Bridge to Recovery, IFPN is targeting low-to moderate-income homeowners whose primary residence is in any county in Indiana.
“Since its formation in 2007, IFPN has been on the forefront of assisting homeowners reach an agreeable resolution with their mortgage lenders. We are excited to have the opportunity to utilize the Hardest Hit Funds to assist homeowners who have fallen behind on their mortgages due to an unforeseen loss of income,” said Stephanie Reeve, Director of Asset Preservation for the Indiana Housing and Community Development Authority (IHCDA) who oversees the IFPN.
The Hardest Hit Fund offers individuals who are unemployed through no fault of their own, assistance in paying their mortgage while they seek employment. Depending upon the county of residence, approved homeowners may receive assistance up to $12,000 or $18,000.
At a minimum, applicants must meet these three requirements:
1) Must be a homeowner, owning only one home and currently residing in that home,
2) If currently unemployed must be a current unemployment insurance recipient. If re-employed after a prior period of unemployment, must have been an unemployment insurance recipient within the past twelve months, and
3) Must agree to participate in approved training, education or volunteer service work.
The overall goals are to secure re-employment in an individual’s chosen occupation or access training made available through the Indiana Department of Workforce Development that will help secure employment in a new occupation. Another alternative is to participate in 40 hours per month of volunteer service through HoosierCorps.
An estimated 13,000 Indiana households will receive assistance at an average assistance level of $702 per month for an average of approximately 16 months, inclusive of payments to clear delinquencies and aid after re-employment.
Interested homeowners should visit www.877Gethope.org or call 1-877-Get-Hope for further information.
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The Indiana Foreclosure Prevention Network is a coalition of community service and housing-related organizations, government agencies, lenders, realtors, and trade associations that are actively addressing Indiana’s foreclosure crisis through a variety of methods. For further information on IFPN or the Hardest Hit Fund, visit www.877GetHope.org.
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Pre-Suit Notice (UPDATED FORM)
On March 17, 2010, Governor Daniels signed into law House Enrolled Act No. 1122. Section 3 of HEA 1122 requires that IHCDA revise the Pre-Suit Notice required under IC §32-30-10.5-8. Under IC §32-30-10.5-8, a lender must send a homeowner a Pre-Suit Notice on a form prescribed by IHCDA at least thirty (30) days prior to filing a foreclosure action against the homeowner.
To provide ample lead time to lenders to adopt the revised Pre-Suit Notice, IHCDA now posts a FINAL version of the Pre-Suit Notice, as revised to comply with the terms of HEA 1122, at http://www.ihcda.in.gov/ and http://www.877gethope.org/ . Under Indiana law, lenders must adopt this Notice no later than January 1, 2011.
Settlement Conference Notice (UPDATED FORM)
On May 10, 2011, Governor Daniels signed into law Senate Enrolled Act No. 582. Section 8 of SEA 582 requires IHCDA in consultation with the division of state court administration to prescribe new language for the Settlement Conference Notice. IHCDA takes the opportunity to revise the Settlement Conference Notice and prescribe a new version under the authority granted in IC §32-30-10.5-8. The original Settlement Conference Notice was published in July, 2009 after considering the input of a great many parties, none of whom had the benefit of knowing quite how Indiana’s new foreclosure law would work in practice.
Having operated under the new law for nearly two years and received feedback on the Notice, IHCDA recognized that the Settlement Conference Notice was not meeting the legislative intent as well as it could. Feedback consistently indicated that homeowners would be more apt to request settlement conferences if the Notice were located on the first page of the summons that is served to the borrower in a foreclosure action. The new Notice has been written so that the borrower is notified of their right to a settlement conference on the first page of the summons.
To provide ample lead time to lenders to adopt the revised Settlement Conference Notice, IHCDA now posts a FINAL version of the Settlement Conference Notice. Lenders must adopt this Notice no later than July 1, 2011.
Loss Mitigation Package
In conjunction with revising the Settlement Conference Notice, Senate Enrolled Act No. 582 Section 6 requires that IHCDA specify a set of documents known as the “Loss Mitigation Package.” The borrower must provide the Loss Mitigation Package to both the lender and the court thirty (30 days) prior to a scheduled settlement conference.
To provide ample lead time to borrowers to adopt the Loss Mitigation Package, IHCDA now posts the Loss Mitigation Package check list and blank forms to complete the check list, as created to comply with the terms of SEA 582, at http://www.ihcda.in.gov/ and http://www.877gethope.org/ . Under Indiana law, borrowers must provide this Loss Mitigation Package for foreclosures filed after June 30, 2011.
Instructions
Please see below for instructions for the Pre-Suit Notice. Although IHCDA has provided instructions for completing and sending the Notices, these are not to be construed as legal advice and do not replace or supersede the provisions of IC 32-30-10.5-8 or other applicable law.
Instructions for Completing Foreclosure Notices
Pre-Suit Notice
Pre-Suit Notice (Spanish)
Settlement Conference Notice
Loss Mitigation Package
Loss Mitigation Forms
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Frequently Asked Questions for Building The Bridge To Recovery (Indiana's Hardest-Hit Fund)
Program Summary
The U.S. Department of the Treasury established the Housing Finance Agency Innovation Fund for the Hardest-Hit Markets (Hardest Hit Fund) in early 2010 to provide financial assistance to families in the states most impacted by the downturn of the housing market. In August 2010, U.S. Treasury announced that Indiana would receive $83 million to help *unemployed homeowners pay their mortgage. In September, an additional $139 million was added to this funding making the total investment for Hoosiers over $222 Million.
The Indiana Housing and Community Development Authority (IHCDA) who oversees the Indiana Foreclosure Prevention Network (IFPN) will administer the program as an additional tool offered to troubled borrowers through IFPN and will offer individuals who are unemployed and eligible for unemployment insurance benifits. This assistance consists of a monthly benefit to cover a portion of their first mortgage and related expenses while the individual seeks new employment. Assistance in bringing mortgage payments current is also available for those individuals who were unemployed and eligible for unemployment insurance benefits but are now re-employed and able to make monthly mortgage obligations moving forward. Additional underwriting criteria may apply.
IHCDA, under the direction of Lieutenant Governor Becky Skillman, the Indiana Department of Workforce Development and the Indiana Foreclosure Prevention Network have partnered to develop a comprehensive, statewide strategy. The plan aims to assist over 13,392 homeowners who are experiencing financial hardship and are at-risk of mortgage loan default or foreclosure. Indiana's HHF program, Building the Bridge to Recovery, will assist homeowners with financial hardships who have been unable to qualify for existing loan modification and foreclosure prevention programs.
*Unemployed and eligible for unemployment insurance benifits.
Need Help Now?
If you are behind on your mortgage or struggling to afford your monthly payments, don't wait-- help is free. Call the Indiana Foreclosure Prevention Network helpline at 1-877-GET-HOPE today or click on the "Apply Online" tab on this website to learn more about IFPN and Building the Bridge to Recovery.
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Download the latest 2011 IFPN Annual Report.
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Getting help - and getting it early - is critically important. The sooner homeowners recognize they may be at risk and seek help, the more options they have to avoid foreclosure.
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