At Retention Advocacy Group, we aim to provide a series of services for the homeowner who has suffered financial hardship and wishes to stay in their home. It is our aim to help homeowners maintain an affordable mortgage payment plan and avoid foreclosure.
Here are brief summaries of the federally funded programs that can help homeowners in an attempt to avoid foreclosure, maintain an affordable mortgage payment, and stay in their homes.
Unemployment Mortgage Assistance Program
The Unemployment Mortgage Assistance Program is a service provided to unemployed homeowners who are in the process of seeking new employment, but hope to avoid foreclosure in the meantime. In order to achieve this, the UMA program is designed to provide assistance for mortgage payments up to a specific amount each month
The benefit on UMA is up to $3,000 per month, and it is possible to receive these payments for a period of up to 18 months.
The UMA program works based on securing a loan against the property.
To be eligible for the Unemployment Mortgage Assistance Program it is a requirement to comply with certain criteria, which includes:
You are currently undergoing a financial hardship that relates to unemployment or underemployment.
You have signed-up for and currently receive unemployment benefit.
You are in a position to provide all relevant paperwork that can help to satisfy the guidelines of the program.
In addition to personal criteria, there is also a need for the mortgage and property to comply with certain criteria, such as:
The outstanding balance for the first-lien mortgage does not exceed a certain amount.
The property is well-maintained and not condemned, vacant, or abandoned.
The property is regarded as your main place of residence.
There are also several instances where you aren’t eligible to apply for this type assistance, which can include voluntary resignation, active bankruptcy in place, or a NOD (Notice of Default) was placed on the property more than 60-days prior to requesting assistance.
Mortgage Reinstatement Assistance Program
The goal of the Mortgage Reinstatement Assistance Program is to help the homeowners who are starting to fall behind on their mortgage payment as a result of a financial hardship.
For the eligible homeowner that wishes to reinstate a delinquent mortgage the MRAP has the ability to provide funding up to $25,000 to assist with outstanding mortgage payments due on the first-lien mortgage.
The process of the MRAP is to apply for a one-time payment of $25,000 which is applied to payments that you have fallen behind on, and covers PITI which is the principal, interest, taxes and insurance. Plus, other payments may be covered such as those related to homeowner’s association dues.
In order to apply for the MRAP it is important for the borrowers to comply with certain criteria, which can include:
You are currently experiencing a financial hardship
You have the means to be able to sustain future payments when the mortgage is reinstated.
You are in a position to provide all relevant paperwork that can help to satisfy the guidelines of the program.
MRAP is also only applicable if the property at stake is able to comply with specific circumstances, such as the first-lien mortgage not being above a certain value, the property is regarded as the primary residence, and it is kept maintained, and not condemned, vacant, or abandoned.
Certain exclusions may apply to those that wish to sign up to MRAP, which can include active bankruptcy and less than two payments behind on the mortgage when asking for assistance.
Principal Reduction Program
The Principal Reduction Program is set up the assist the homeowner who is in the position of owing more on the mortgage than their home is actually worth.
By using this service it is possible to get financial assistance that helps to pay down the principal balance on the negative mortgage.
Anyone applying for the PRP must be in a position of experiencing an economic hardship that is combined with a significant downturn in the value of their main residence.
Homeowners that get accepted for the Principal Reduction Program have the potential to be granted up to $100,000 in aid.
The principle on the bad mortgage can be applied in several different ways, which can include a reduction, a loan modification, a loan request, or eliminating a present non-interest bearing forbearance. Each of these reduction plans will help to leave behind a more acceptable debt level for the homeowners; as a consequence, this results in the more affordable future monthly mortgage payment.
Similar to the other programs, the PRP is subject to certain eligibility criteria for the borrower, which can include:
You have recently experienced a financial hardship which prevents you from keeping up with your regular payments
You have the ability to continue to make future mortgage payments once the revised figures have been calculated.
You are in a position to provide all relevant paperwork that can help to satisfy the guidelines of the program (documents need to illustrate eligible hardship).
Transition Assistance Program
The Transition Assistance Program is for homeowners who are undergoing a short sale or deed in lieu of a foreclosure program. This type of program is a benefit for those seeking financial help while in the process of relocating to more affordable housing.
By applying to the TAP it is possible for the eligible homeowner to receive a sum of up to $5,000 which is available on a one-time basis, and intended to cover the cost of security deposits, moving expenses and rent.
TAP is applicable to the homeowner that has been involved in a short sale and it has been established that they are no longer in a position to afford their home.
It is used in combination with a deed-in lieu and short sale program to increase the ability to achieve a smooth transition in the process of being relocated.
The eligibility criteria for the borrower and eligibility criteria for the home are quite similar to the other types of federally funded programs for the homeowner experiencing a significant downturn in their finances.