What are some ways to keep struggling owners in their homes?
Finally, there are some programs that will help homeowners who have experienced temporary hardships stay in their homes.
After years of short sales and foreclosures, someone has finally figured out that many of these situations were temporary with homeowners losing jobs and eventually finding new employment but never being able to get caught up on past due mortgage bills.
I had always thought that there should be a forbearance program much like with student loans but that never came to pass. A Realtor’s job is not just to sell homes but also to help people stay in their homes.
I received some information on some programs to help folks stay in their homes from an attorney I know, Ron Bellenot, who specializes in foreclosures and bankruptcy.
One such program is the BlueHub SUN program, now available in Connecticut. This is for homes already in foreclosure. Aura Mortgage Advisors buys the home at the foreclosure price and then immediately sells it back to the original owner at the reduced amount of the foreclosure sale.
By doing this, the principal owed and the monthly payments are automatically reduced. The owner must have steady employ- ment and demonstrate a commitment to staying current on their mortgage payments. You can call them at 855-604-HOME for information and to complete the inquiry form.
A second option is the Emergency Mortgage Assistance Program (EMAP). It is available to homeowners who have fallen behind or who anticipate falling behind on their mortgage payment because of a temporary financial hardship beyond their control.
This program is run through the Connecticut Housing Finance Authority. This is a second mortgage placed on the property which will allow the owner to come/stay current on their mortgage or common charge payments. The owner may also be eligible for monthly payment assistance.
The assistance is available for up to 60 months. Repayment of the loan does not start until the homeowner’s finances permit. The EMAP loan is a 30-year fixed-rate mortgage. For more information on this program, call 877-571-CHFA.