For homeowners in Pennsylvania who need a loan modification, and who want to explore government options, they have more than one place to turn to for help. They can explore federal government programs, or they can use a mortgage loan program that is offered by the Pennsylvania Housing Finance Agency. This state agency offers those who are suffering a financial hardship and the jobless loans of up to $60,000 that need to be used to pay for a homeowners mortgage. The program has a 80% success rate in preventing foreclosures across the state.
The Pennsylvania emergency mortgage assistance program, which is self-funded as the money for it comes from the state and borrowers' repayments on loans that were previously taken out, has come under review lately as the president and other states try to find a way to help the unemployed stay in their homes. So the program may eventually be copies by other states. The terms of the loan can be for as long as ten years, and it needs to be used to cover monthly payments or take care of any arrears the borrower may have.
Local housing and/mortgage counselors will send the Pennsylvania Housing Finance Agency applications of those homeowners who are suffering temporary hardships beyond their control, such as job loss, reduction in income, or a medical emergency. Those approved for the loan could have their arrears wiped out, their monthly mortgage obligation covered for an extended period of time, or both. It is very effective at preventing or even stopping foreclosures. You can contact a local community action agency to get in touch with a housing counselor to apply. More.
As indicated above, the success rate is very high. Government officials attribute the assistance program's success rate to a careful inspection that is performed of an applicant’s financial background and credit status. These inspections are also updated and reviewed annually. As an example, those applicants who have racked up credit card bills, unpaid bills and other debts are not likely to gain approval for a loan. Those people who have previously had strong employment histories and job skills, and who the agency considers likely to land a job within a few months or years are likely to be approved by the agency.
General guidelines state that the applicant needs to have a reasonable prospect of resuming full payments within 36 months and of paying the mortgage in full during or after that timeframe.
If a borrower is approved, loan payments will be made directly to the servicers and a lien will be placed on the home. The loan will usually be repaid at a 5.25% interest rate over 10 years on average, though the borrower's financial circumstances are taken into account so the exact rate or interest rate may vary.
You can call the Pennsylvania Housing Finance Agency at 800.822.1174 to learn more about the mortgage emergency loan program.
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