While housing markets in many parts of the United States have slowly recovered from the Great Recession, thousands of homeowners across the country are still reeling from its effects, owing more on their mortgages than what their homes are really worth at current fair market value. Others, after being laid off and unable to find work, have had no choice but to sell their homes as distressed assets to stay afloat.
In response to these problems, the government and multiple nonprofit organizations have created different relief programs for distressed homeowners still recovering from the economic downturn, families going through financial difficulty (e.g. foreclosure and short sale), and calamities (e.g. flooding, fire). We look at a few of these resources.
Critical Home Repairs and Rehabilitation
1. Habitat for Humanity works with homeowners to provide relief to their health and safety issues at home, assisting them with critical home improvement and repair projects. Habitat accepts applications from low-income residents, veterans, people with disabilities, as well as single-parent families, who live in homes that are in dire need of repair.
The organization’s critical home repair program helps ensure that families are living in safe and well-maintained homes, preventing families from being forced to leave their homes and live in shelters and transitional housing.
2. Under Section 504 of the USDA Rural Development’s Home Repair program, Single Family Housing Repair Loans & Grants are available to very-low-income homeowners, allowing them to improve, repair, and modernize their homes. These loans are also open to eligible elderly very-low-income homeowners, who may need repairs and home rehabilitation to remove health and safety hazards.
Foreclosure and Mortgage Assistance
There are multiple assistance resources available at the federal, state, and local government level designed to help homeowners avoid a foreclosure.
3. For starters, the U.S. Department of Housing and Urban Development (HUD) offers free foreclosure avoidance counseling, giving people advice on renting, buying a home, credit issues, and avoiding foreclosure.
4. The Home Affordable Refinance Program is designed to help “underwater” homeowners who owe more on their mortgages than the current value of their home. While many homeowners are able make on-time mortgage payments, they are unable to refinance and take advantage of current low mortgage rates because of the major decrease of their home value. This is where a Home Affordable Refinance comes in, allowing borrowers to refinance their first mortgage even its balance is greater than the value of their home.
5. The Home Affordable Unemployment Program allows unemployed homeowners to suspend their mortgage payments by 12 months or more. Qualified homeowners can reduce their mortgage payments by up to 31 percent of their income or have them fully suspended.
For more guides and insights on home ownership, don’t hesitate to get in touch with Blue Hen Homebuyers. We can help you buy or sell your home, regardless of its condition. Call our offices today at 910-802-2222 to learn more about how we can help you.