HOME SAVER. Mississippi Home Corporation. 735 Riverside Dr. / Jackson, MS / / mshomecorp.com

Transcription

1 HOME SAVER Mississippi Home Corporation 735 Riverside Dr. / Jackson, MS / / mshomecorp.com

2 SUMMARY OF HHF POLICY Unemployed Underemployed Reinstatement Only GUIDELINES Mortgage Assistance with Education Option Death or Divorce

3 UNEMPLOYED To bridge eligible applicants across a period of unemployment and allow them to stay current on their mortgage.

4 UNDEREMPLOYED To bridge eligible applicants across a period of underemployment and allow them to stay current on their mortgage.

5 REINSTATEMENT ONLY To bridge eligible applicants current after a brief interruption or reduction in income.

6 DIVORCE OR DEATH OPTION To bridge eligible applicants across a period of loss of 15% or more in income due to divorce or the death of a spouse and/or co-borrower. The Death and Divorce Option will allow the applicant breathing room to stabilize their situation after the life event disruption.

7 MORTGAGE ASSISTANCE WITH EDUCATION OPTION Applicants are eligible for an additional twelve (12) months of assistance if an applicant enters an educational program that leads to a certification or degree from one of the state s community colleges. If the applicant lives in a distressed county, an additional six (6) months will be added (not to exceed the maximum assistance.)

8 MAXIMUM ASSISTANCE Applicants are eligible for up to $50,000 of arrearage assistance which must include a minimum of twelve (12) months of mortgage payments. A cap of $50,000 is the maximum amount permitted for the mortgage assistance regardless if the education option is included or not.

9 TERMS OF ASSISTANCE Non recourse 0% interest, nonamortizing, forgivable loan secured by a subordinate lien on the subject property. Forgiven over a five (5) year period at a rate of 20% per year. If the property is sold or refinanced prior to the loan termination date, funds will be recovered should sufficient equity be available from the transaction.

10 ELIGIBLE APPLICANTS UNEMPLOYED: One or more applicants must be receiving unemployment or must have exhausted unemployment compensation benefits. UNDEREMPLOYED: Applicant that can show a reduction in income by 15% or more since the hardship event. REINSTATEMENT ONLY: Applicants who have fallen behind but are now re-employed and can now sustain the mortgage. Applicants must show that they experienced a hardship with either a 15% reduction in income or a job loss. If the hardship was a job loss the applicant must have been eligible for unemployment benefits. Mortgage debt to income ratio must be 35% or below. Applicants that are eligible for the option may not participate in any other options.

11 INELIGIBLE APPLICANTS Active Bankruptcy Disabled & permanently unable for full-time employment Loss of employment or reduction in income due to medical reasons Part-time employment (unless eligible for unemployment)

12 INELIGIBLE APPLICANTS Temporary/Seasonal employment Permanent/intermittent work is seasonal and does not apply Contract work is not considered permanent work and does not apply Catastrophic medical expenses

13 INELIGIBLE APPLICANTS Self-inflicted financial hardship and or poor debt management, stripping the equity from their home for non-essential purpose, or overall mismanagement of their personal budget Home has already been foreclosed on An individual may only receive assistance ONE time. If an individual listed on a mortgage receives assistance for a property, no other individual listed on the mortgage may receive assistance for the same property.

14 INELIGIBLE APPLICANTS Teachers or other employees cannot claim a hardship due to a decrease in income from a nine-month pay cycle. Rental income will be regarded as investment income and cannot be used to calculate a hardship based on loss of income.

15 ELIGIBLE EXISTING MORTGAGES Fixed rate Fixed term Balloon term ARM Fully amortizing Unpaid principal loan balance cannot exceed $271,000 Home equity line of credit closed to future advances

16 INELIGIBLE EXISTING MORTGAGES Second Mortgage Loan Chattel Mortgages without Deed of Trust Interest only Loans Negative Amortizing Loan Open End Mortgage/Future Advance Clause Loan Held by non-participating servicer

17 INELIGIBLE EXISTING MORTGAGES Seller Financed Contract for Deed Lease with Option to Purchase Home Equity Line of Credit Open to future advances Construction to Perm Loan not modified to permanent financing Second Homes or Investment Properties

18 PROPERTY TYPES Single Family (attached or detached) Condominium Unit Manufactured Home on a foundation permanently affixed or real estate owned by the borrower. Title to manufactured home must be surrendered and the manufactured home must be taxed as real property (must supply documentation to support mobile home is taxed as real property) Must have a Deed of Trust 1-5 unity properties where the applicant is living in one of the units

19 MINIMUM ELIGIBILITY CRITERIA Applicant must have a monthly mortgage payment that they cannot afford due to unemployment or at least a 15% reduction in income. The unpaid principal balance of first mortgage cannot exceed $271,000. Job loss had to occur on or after January 1, 2008.

20 MINIMUM ELIGIBILITY CRITERIA Mortgage must have been made prior to the hardship event Unemployed applicants must be eligible to receive or have exhausted unemployment benefits Self employed applicants must be able to document a 15% reduction in income with minimum two (2) years IRS tax transcripts

21 MINIMUM ELIGIBILITY CRITERIA Self employed applicants must have been self employed for a minimum of two (2) years All documentation must be current and within 60 days of approval Servicer must be a participating servicer or be willing to sign up as a new participating servicer

22 MINIMUM ELIGIBILITY CRITERIA Applicant must be a resident of the State of Mississippi Applicant must owner occupy the home as their primary residence The applicant with the hardship must be on at least one of the following 1. Note 2. Deed of Trust 3. Warranty Deed 4. Quit Claim Deed

23 REQUIRED DOCUMENTATION FOR UNEMPLOYED Copy of most recent Utility Bill Copy of DL or Photo ID (all parties involved) Copy of SS Card (all parties involved) Copy of Unemployment Benefit Letter, applicant may supply, however, underwriter will pull from the MDES website on each file

24 REQUIRED DOCUMENTATION FOR UNEMPLOYED Copy of most recent Mortgage Statement (if the name of the applicant is not on the mortgage statement, your must provide one of the following additional mortgage documents which does include the applicant s signature) 1. Note 2. Deed of Trust 3. Warranty Deed 4. Quit Claim Deed

25 REQUIRED DOCUMENTATION FOR UNDEREMPLOYED & REINSTATEMENT ONLY Current Mortgage Loan Statement Copy of Original Signed Note Copy of Original Signed Deed of Trust If employed Most recent Pay Stubs Most Recent Two (2) Years W2 s or 1099 s Most Recent Two (2) Years Federal Tax Transcripts VOE s for Current Employment (if needed) VOE s for Previous Employment (if needed)

26 REQUIRED DOCUMENTATION FOR UNDEREMPLOYED & REINSTATEMENT ONLY Self Employed Two (2) years most recent Business and Personal Federal IRS Transcripts (all schedules) Self Employed YTD Profit & Loss Statement (signed by preparer) Self Employed Most recent Two (2) months Business and Personal Bank Statements

27 REQUIRED DOCUMENTATION FOR HISTORY UNDEREMPLOYED & REINSTATEMENT ONLY Current SSI Awards Letter (if applicable) Copy of DL or Photo ID (all parties involved) Copy of Social Security Card (all parties involved)

28 ADDITIONAL DOCUMENTATION THAT MAY BE REQUIRED Divorce Decree or Court Ordered Document Quit Claim Deed (Divorce or Separation) Doctors Release authorizing fulltime employment (Disability) Additional Tax Returns prior to most recent 2 years (Hardship) Bankruptcy Discharge Papers

29 SOURCES OF INCOME NOT CONSIDERED IN DETERMINING ELIGIBILITY Foster Care Family Contributions Food Stamps Medicaid Veteran s Administration Educational Benefits Child Support Social Security/Disability Benefits Retirement Income

30 HOW TO APPLY FOR HOME SAVER Visit Our Website Once application is completed successfully a counselor will contact you to assist you through out the process