February 25, HomeSafe Georgia Program Information for MHA Webinar

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1 February 25, 2015 HomeSafe Georgia Program Information for MHA Webinar

2 HomeSafe Georgia is a free state program funded by the federal government to help homeowners who are unemployed, underemployed, or face other types of financial hardships save their home from foreclosure.

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5 HomeSafe Georgia quiz questions: 1. Is your home your primary residence? 2. Are you in an active bankruptcy? If the homeowner is currently in bankruptcy, the application can be reviewed, but no assistance can be provided while in bankruptcy. Homeowner must be able to discharge or dismiss the bankruptcy if approved. 3. Is your total loan balance less than $417,000? 4. Have you suffered a financial hardship in the last 36 months? 5. Type of hardship: Unemployment, underemployment Military, medical, death Permanent loss of income.

6 HomeSafe Georgia programs: Mortgage Payment Assistance (MPA) Mortgage Reinstatement Assistance (MRA) Mortgage Payment Reduction (MPR) In addition to general eligibility requirements, each program has specific eligibility requirements. Applicants must meet all requirements in a program to receive assistance.

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8 The lender must be participating in the HomeSafe Georgia program. Select Our Programs tab, then choose any of the three programs. Scroll down to find the link: That will bring up a PDF list of lenders. Not all lenders participate in all programs. Don t see the lender? ASK.

9 Mortgage Payment Assistance (MPA) The unemployment or underemployment qualifying hardship has made the mortgage payment unaffordable. Unemployment and underemployment (25% loss of household income or 30% loss of gross receipts for self employed) hardships through no fault of own Assistance up to 24 months (monthly payments) plus lender fees for the first mortgage and some second mortgages (non HELOCs); Borrower may have to contribute toward payment Of the 24 months, up to 15 of the months can be used to reinstate the mortgage Current payment ratio > 25% Mortgage must have been current* at the time of hardship or at the time of application Mortgage cannot be more than 12 months delinquent at the time of application***

10 Mortgage Reinstatement Assistance (MRA) The qualifying hardship caused a loss of income that resulted in mortgage delinquency. The hardship has passed or there is sufficient income to make the payments going forward. Qualifying Hardships: Unemployment and underemployment (25% loss of household income or 30% loss of gross receipts for self employed) through no fault of own Military (10% loss of income) Medical (30 doctor s care/20 missed workdays/10% loss of income or 30% loss of gross receipts) Death (10% loss of income/30% gross receipts; 20 missed workdays if not spouse s death) Assistance up to 15 months (12 months + up to 3 months for processing) plus lender fees in a onetime payment to reinstate the first mortgage and some second mortgages (non HELOCs) Mortgage cannot be more than 12 months delinquent at the time of application*** Delinquency must have occurred no later than 6 months after hardship (allowances for unemployment) Current payment ratio < 40% or up to lender maximum

11 Mortgage Payment Reduction (MPR) The qualifying hardship caused a 25% permanent loss of household income that resulted in an unaffordable mortgage payment. Qualifying Hardships: Exhaustion of unemployment benefits to Social Security Full disability Death of a residing income-contributing spouse or homeowner Assistance up to $45,000 in a onetime payment to the lender to recast or modify the loan to provide an affordable payment Payment ratio must be > 31% for a homeowner to be considered for the program Payment ratio after assistance must be < 40% or lender max, but cannot drop below 25% Total LTV cannot drop below 80% Homeowner should verify with their lender that their mortgage loan can be recast/modified.

12 The online application can be started with or without taking the quiz. Once the online application is complete, the applicant must download and print the application. The applicant and spouse plus other individuals legally tied to the home (borrowers and homeowners) must complete the application and sign where indicated. The application printout contains a checklist of required supporting documentation. This information must be gathered and along with the application, submitted to HomeSafe Georgia for consideration. Most applications receive a disposition within 60 days, with up to an additional 30 days for closing if approved.

13 Customer Service Call or Toll free Diane Hester Customer Service & Training Manager

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