The Arizona Home Foreclosure Prevention Funding Corporation will offer assistance to customers facing foreclosure in Arizona's Hardest Hit Markets. AHPFC provides assistance in the form of Unemployment Mortgage Assistance, Mortgage Modification, Principal Forbearance, and Second Lien Elimination. For information on all the programs available please visit the ADOH website: http://www.azhousing.gov
Each component is summarized below:
1. UMA Unemployed Mortgage Assistance – assists homeowners to pay for all or a portion of their mortgage, they must be eligible for Unemployment Benefits. Second mortgage holder or spouse must contribute 31% of their income to the mortgage payment.
2. Underemployed Mortgage Assistance – employed homeowner(s), whose current income level is below their previous earnings and whose monthly 1st mortgage payment is greater than 31% of their current income– very similar to our current Unemployment Mortgage Assistance. Must not be a self-imposed hardship, homeowner should have been laid off from previous job.
3. SMS Second Mortgage Settlement – participants accepted into the other components can get assistance paying of their second mortgage through a settlement.
4. RAC Reinstatement Assistance – to cure or pay current a homeowners delinquency who has experienced a qualifying hardship and now their monthly 1st mortgage payment is affordable (31% or less) and sustainable.
5. SSA Short Sale Assistance – providing a short sale homeowner, up to $4,500 in transition assistance as well as paying up to 3% of closing costs on their behalf. Must apply before short sale has been approved by the bank.
6. PRA Principal Reduction Modification – this program is difficult to get into due to low participation by the mortgage companies. FHA loans are ineligible for this program.
Regardless of the program component, there are three general guidelines that must always be true in order to qualify.
Qualifications
1. The homeowner must have an eligible hardship - Death, Divorce, Medical, Unemployment or Underemployment
2. The homeowner 1st mortgage PITI must be over 31% of their pretax income (even in the reinstatement component this must have occurred during the delinquency period)
3. The homeowner has not cashed out and accessed their equity by refinancing with cash out or home equity line of credit
This is a program of the Arizona Department of Housing.
How do you start?
For more information or assistance in filling out the application, contact at 602-263-5741.
Make sure to add Labor’s Community Service Agency (LCSA) as your counseling agency on the application. The application can be found online: http://www.azhousing.gov
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