Preventing Foreclosures In PA Through HEMAP

Over the past 12 months, the number of homes entering foreclosures in PA has risen by more than 20 percent, an indication that the United States nation as a whole appeared to have leveled off while Pennsylvania worsened.

Preventing Foreclosures in PA

Photo Courtesy of Jean-Michel Reedvia Flickr

Thanks to HEMAP or Homeowners’ Emergency Mortgage Assistance Program, thousands of families in Pennsylvania facing possible loss of their homes through foreclosure can now get help. Funded by State appropriations, HEMAP, a one-of-its-kind program in the nation, was created by Act 91 of 1983. Through HEMAP, homelessness is prevented by providing Pennsylvanians cost-effective measures by allowing homeowners to seek alternate employment, job training, or education, assuring them to be able to pay their mortgage payments steadily.

Homeowners’ Emergency Mortgage Assistance Program is a loan program designed to help financially distressed Pennsylvanians who are facing foreclosure through no fault of their own. HEMAP loans are not grants; these are loans that must be repaid and there are some mortgages that are not eligible for this program.

How HEMAP can help foreclosures in PA

There are two types of assistance under HEMAP; (a) continuing mortgage assistance loans and (b) non–continuing mortgage assistance loans. Once approved for HEMAP assistance, a loan is created to bring the delinquent payments up-to-date. This loan is secured through mortgage on the property being threatened by foreclosure.

For a continuing mortgage assistance loan, the homeowner’s mortgage is brought current to a specified date after which HEMAP will subsidize the monthly mortgage payments. The homeowner remits his or her monthly contributions to HEMAP after which HEMAP combines this amount with HEMAP funds then forwards the full monthly mortgage payment directly to the lender.

For a non–continuing mortgage assistance loan, the homeowner’s mortgage is brought current to a specified date after which the homeowner will be the one responsible for the subsequent monthly mortgage payments along with a monthly payment to HEMAP. In a non-continuing mortgage assistance loan, the homeowner may also be responsible for the cash contribution whatever the delinquencies on the mortgage when the HEMAP loan closes.

Some facts on HEMAP loan

>Both continuing or non–continuing HEMAP loans have a maximum of $60,000.00 or 24 to 36 months maximum from the date of the mortgage delinquency, whichever comes first.

>Households requiring 40 percent contribution of the income has an interest rate of 9%. If a homeowner’s income does not require repayment based on the 40 percent computation, no interest will be charged. Instead, interest will be adjusted back and forth to 9% as necessary.

>HEMAP loan recipient is responsible to pay up to 40 percent of their household net monthly income, or NMI, towards their total housing expenses, with a mandatory minimum monthly contribution of $25.00/month for every mortgage assisted.

>Total housing expenses consist of mortgagor’s monthly mortgage payments, escrows, utility costs, hazard insurances, real property taxes and maintenance, in cases of cooperatives and condominiums.

Foreclosures in PA may be on the rise, but there are still a number of programs to stop it. All you need to do is find out about programs that can help and you’re on your way to regaining your home.

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