Georgia Department of Community Affairs Launches Foreclosure Prevention Program

 Beginning on April 1, the Georgia Department of Community Affairs will be assisting Georgia homeowners who are unemployed or underemployed with mortgage payments to lower the number of foreclosures in the state.

 

According to the firm RealtyTrac over 8,000 homes in Georgia received foreclosure notices in January and 2011 is expected to be the peak year for foreclosures nationally.

 

The United States Treasury Department has created a foreclosure prevention program called the Hardest Hit Fund (HHF). HHF is funding programs in 18 states and the District of Columbia that were hit hardest by the recession. The Georgia Department of Community Affairs is tasked with making HHF work for Georgians.

 

“The job market has simply not recovered like many have hoped,” said DCA commissioner Mike Beatty.

 

“Many households have seen their income go down. Even people who own their own business are making less. In homes across the nation, people are wondering how they will pay their mortgage.”

 

Applications for mortgage payment assistance will be taken online at www.HomeSafeGeorgia.com. “HomeSafe Georgia is an opportunity for many homeowners to keep their home,” said Beatty.

 

Some of the eligibility requirements include being current on mortgage payments prior to job or work loss, being a Georgia resident, being the owner and living in the property, having total mortgage debt less than or equal to $417,000, and having payments (including escrow) greater than 31 percent of monthly household income.

 

Also, if a homeowner is now working and able to make their house payment, but got behind during a time of unemployment, the program may be able to help with back payments.

 

Homeowners who complete the process and are eligible for assistance will close a zero percent loan. HomeSafe Georgia will then make the monthly payments to the servicer after collecting a partial contribution from the homeowner. There is no cost to the homeowner to apply or close the loan.

 

The total amount of assistance provided to a homeowner may not be longer than 18 months. Within that time people should be able to find work or have completed a training program leading to work. Following the assistance period, the total amount of assistance will be forgiven over a five year period at a rate of 20% per year.

 

Churches, clubs, and community organizations are encouraged to help those who may not have internet access at home to apply for these funds. For more information, please visit www.HomeSafeGeorgia.com.