Showing posts with label underwater georgia. Show all posts
Showing posts with label underwater georgia. Show all posts

Wednesday, September 28, 2016

State program to help Georgians with their mortgages

The Georgia Department of Community Affairs has launched a new program to help the approximately 150,000 Georgians whose mortgages are greater than the value of their homes.

The Underwater Georgia program is targeted to relieve this pressure by using federal funds to make a one-time payment to reduce the principal balance on their home.

Georgia’s housing market was hit hard by the Great Recession, and some Georgia homeowners still find that their houses are worth less today than before the recession.

Many workers find while job opportunities are increasing, they are unable to move to jobs in new areas because their outstanding mortgage is higher than the selling price of their house. This is causing inefficiencies in the labor market as workers are reluctant to take jobs that will cause them to move and lose money when they sell their residence, which is the principal source of savings for most families.

By reducing homeowners’ mortgage principal, the program hopes to reduce stress in families, improve the housing market, and allow workers to pursue job opportunities even if it requires a move to a new area.

Application process

For three weeks, from September 28-October 18, 2016, Georgia residents will be able to visit to fill out a pre-application for these funds. 

All applications will be assigned a number, which will be sent to a third party for a blind random selection process.  Next, the randomly selected applications will be reviewed, in the order selected, for eligibility and those deemed eligible will continue through the process. 

To be eligible, a homeowner must:

•                    Owe more than home is currently worth. 
•                    Owe no more than $250,000.
•                    Purchased home before 2012.
•                    Less than 90 days late on mortgage.
•                    Mortgage lender is willing to participate.
•                    Have not previously received HomeSafe Georgia assistance.

It is expected that the program will receive more applications than available funding, so it is unlikely that all eligible applicants will receive assistance. Based on current funding, an estimated 2,700-3,000 eligible Georgia homeowners will receive assistance.

How the Program works

According to the Georgia Department of Community Affairs, for successful applicants, a one-time payment will be made to your lender/servicer on your behalf. The funds will be used to reduce your principal balance, usually on the first mortgage. The funds will be provided as an interest-free loan. A subordinate lien will be placed on the home, for which the balance will be forgiven at 20% each year.

After 5 years, the lien will be cancelled.

If you sell your home before the lien is cancelled and you have equity in the home, you will have to repay the portion of the loan that is outstanding. If you sell your home before the lien is cancelled and there is no equity in the home, repayment will not be required. HomeSafe Georgia will subordinate to a “no cash out” refinance.

Determining Eligibility

To see if you are eligible to participate in this program, you may take DCA’s Eligibility Quiz here.

Customer Service representatives will be available 24 hours a day to take calls during the pre-application submission period.

Toll Free: 1-877-519-4443
Para asistencia en EspaƱol, presiene (4) cuatro.

TDD/TYY Line: toll free 1-877-204-1194