Delaware offers foreclosure assistance to homeowners

According to Realty Trac, more than 932,000 U.S. foreclosure filings were reported in March 2010.

This represents an 8 percent increase in filings from March 2009, and it is a 16 percent increase over those recorded for February 2010, signalling the mortgage crisis is not over.

In response to this ongoing dilemma, the Delaware State Housing Authority has instituted three new initiatives. Tom Simonton, manager of housing assistance at Consumer Credit Counseling Service of Maryland and Delaware (CCCS), acknowledges Delaware has been very proactive in addressing this problem.

“Community members who are worried they may lose their homes need to know that quality no-cost housing counseling is available from local HUD [U.S. Housing and Urban Development]-approved nonprofit agencies like CCCS. We can help residents explore state and federally sponsored programs that may offer relief. The key is not to wait to get help until it’s too late,” said Simonton.

Delaware’s three most recent housing initiatives are Delaware Emergency Mortgage Assistance Program (DEMAP), Homeownership Grant Assistance Program (HGAP) and foreclosure mediation.

DEMAP is a loan program to help Delaware homeowners avoid losing their homes if they are facing foreclosure due to circumstances beyond their control.

DEMAP loans are secured by a second or third mortgage against the homeowner’s residential property. The interest rate for these loans is set at 3 percent, and the loans are deferred. However, interest does accrue daily until the property is refinanced or sold, at which point the full loan balance and all interest must be repaid. DEMAP offers two types of loans.

To participate in the DEMAP program homeowners must meet income eligibility and other requirements.

HGAP assists homeowners who are facing foreclosure by offering federal funds up to a maximum of $5,000 or four mortgage payments, whichever is less. HGAP funds are available to deal with specific housing-crisis situations and are not meant to address recurrent or ongoing needs. Support given under this program must meet these criteria and is expected to stabilize households, allowing families to meet their basic needs.

HGAP is limited to homeowners who meet federal income guidelines; have related, dependent children under age 18 living in the home; and who confront the impending risk of becoming homeless. Maximum household income limits also apply.

HGAP does not feature extra liens and does not include debt-to-income restrictions. There are no employment or credit requirements; however, applicants must show evidence they will be able to carry on the mortgage once grant benefits are provided. This program expires Sept. 30.

Under the Delaware Foreclosure Mediation Program, homeowners meet directly with their lenders to explore alternatives to foreclosure. An experienced housing counselor and trained mediator also sit in on this discussion. This mediation opportunity is only available for a limited time.

To take part, contact a HUD-approved housing counseling agency immediately to schedule an appointment and complete an application. Homeowners usually are informed directly by mail about how to participate in this program.

Visit the Delaware Foreclosure Mediation Program at deforeclosurehelp.org/mediation.html
.

“No matter which federal and state initiatives may be available, it is absolutely critical that distressed homeowners reach out for help as soon as possible,” said Simonton.

For more information call 877-207-5682 or visit cccs-inc.org
.