Oct 312012

By Naomi Hatch
“There are a lot of scams. There is no reason to have to pay for foreclosure prevention services,” said Terry Nagle of the Northern Arizona Council of Governments (NACOG) Housing Counseling Program at the Oct. 23 Snowflake Town Council meeting.
Nagle said people be warned that they should not pay money to stop foreclosures and explained assistance programs that have been set up to help those in financial distress.
Save Our Home AZ was created to assist responsible homeowners in avoiding foreclosure on their primary Arizona residence. It does require some qualifications.
Arizona Department of Housing (ADOH) Assistant Loan Terms can provide up to $100,000 with zero per-cent interest, he explained.
Nagle said that there are four types of assistance.
The first is principal reduction assistance. Permanent mortgage modification or Home Affordable Refinance Program (HARP) 2.0 refinance can provide assistance of up to $100,000 (including all other program assistance). HARP 2.0 assistance is provided to approved HARP 2.0 eligible homeowners. It requires participation by the servicer and the lender, and a mortgage balance greater than 120 percent of the subject property’s fair market value before modification or refinance.
Second mortgage settlements, the second type, assist up to 40 percent of the outstanding loan balance up to a maximum of $16,500 ($8,500 maximum when combined with short sale assistance, and a combined mortgage balance of first and second lien is greater than 12 percent of the subject property’s fair market value.
The third is unemployment/underemployment (reinstatement) mortgage assistance (UMA), which can assist up to $100,000 including all other program assistance), with a maximum amount of monthly UMA assistance of $2,000 to a maximum term of 24 months. Homeowners with a current monthly income source (excluding Department of Economic Service unemployment benefits) are required to contribute 31 percent of their income to-ward the first mortgage payment; and reinstatement assistance may bring the first mortgage current by curing all past due payments including accrued interest, late fees, NSF fees and any legal fees. Reinstatement is generally provided once the homeowner is financially able to resume making monthly mortgage payments without pro-gram assistance. If reinstatement is a standalone program component, the 12-month cap does not apply.
Finally, short sale assistance provides assistance up to $25,000 (including all other program assistance) distributed, with a maximum of $4,500 in transition assistance paid to the consumer and a maximum of three per-cent of the sales price for buyer’s closing costs paid on behalf of the seller.
For more information, go online to www.azhousing.gov and complete an online application, or contact Nagle in Winslow at (928) 289-6020.