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The Federal Government Has a Pot of Money That Can Help Struggling Homeowners Get Between $15,000 and $80,000.

The Federal Government Has a Pot of Money That Can Help Struggling Homeowners Get Between $15,000 and $80,000.

There is still a fund set aside by Congress for homeowners in need of assistance after the conclusion of most of the pandemic-era forbearance options.

The U.S. Department of Treasury administers the Homeowner Assistance Fund, a roughly $10 billion government programme set up to assist families who have fallen behind on their mortgages and other housing-related payments as a result of the financial consequences of the public health crisis.

Stockton Williams, executive director of the National Council of State Housing Agencies, said that while many homeowners are on the road to financial recovery from the pandemic’s deadliest days, the need for assistance persists.

According to Williams, “some homeowners… are still enduring financial and economic hardship, particularly those with low incomes and homeowners of colour,” according to the data.

Many homeowners may be unaware of the aid they are eligible for while other government initiatives, such as increased unemployment compensation and rental assistance, gain greater attention.

Detailed information on the programme is provided below.

Who may apply?

A Covid-19-related hardship or a family income of less than $79,990 is normally required to qualify for the programme, which is handled by the states and has varying eligibility conditions.

The assistance is only available for principal residences.

According to Williams, the majority of state programmes do not require delinquency as a condition of eligibility.

To qualify for help with other housing costs, such as utilities or property taxes, borrowers don’t always need to have a mortgage balance.

What do I need to do before this?

You can see on a map provided by the National Council of State Housing Agencies where you may submit an application in your particular state. Programs in several states are still in the early stages of development.

Nearly all programmes have been authorised by the Treasury Department as of the beginning of March, with 24 states, Puerto Rico, and Guam have already done so.

Williams predicted that “almost all programmes will be open by June.”

How much of the costs are covered by the aid?

According to the Consumer Financial Protection Bureau, qualified expenses include mortgage payments, property taxes, homeowners’ insurance, association fees, utility costs, and some home repairs.

How much financial assistance am I likely to receive?

According to the National Council of State Housing Agencies, the maximum amount of assistance a homeowner may obtain ranges from $15,000 to $80,000.

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Is there enough to go around for everybody?

Unfortunately, I doubt it. It’s too late to apply to New York City now.

About a third of past-due mortgage payments owing to the pandemic can be cleared up by the $10 billion Homeowner’s Assistance Fund, according to one study.

The worst-case scenario is that I don’t receive the funds.

Your mortgage company should be informed of any delays in receiving a response from the Homeowner Assistance Fund, especially if you are in danger of losing your home to foreclosure.

In the event that you or someone you know is having financial difficulties, you should contact a housing counsellor approved by the US Department of Housing and Urban Development.

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