Homeowners Without Traditional Mortgages Can Get Aid, Treasury Says
States can allocate a portion of the $ 10 billion in federal funding to struggling homeowners to help people who bought their homes with non-traditional home loans, according to Treasury Department officials.
Guidelines released Monday for the new Homeowners Assistance Fund allow states to provide a financial supplement to qualified residents facing foreclosure on a loan for a mobile home or a home acquired through contract against. deed – a loan financed by the seller of the property. Some elderly residents who have taken out a reverse mortgage on their home – an arrangement in which a borrower can get money for the equity in their home – may also be eligible for emergency assistance.
The Treasury Department’s decision to expand program support to those without traditional mortgages came after lobbying from advocates and some state governments. A handful of states, including Texas and New York, have made preliminary plans that would allow them to allocate a portion of the Homeowner’s Assistance Fund money to those who own mobile homes or homes acquired by the Homeowner. through deed contracts, sometimes referred to as land contracts.
These homeowners are among the most vulnerable because they can be easily foreclosed or evicted after missing a few payments. And these borrowers, who typically have bad credit, tend to pay higher than normal interest rates on the loans they take to acquire their homes.
The $ 10 billion allocated to the Homeowners Assistance Fund was included in the US bailout, the $ 1.9 trillion measure passed by Congress and the Biden administration to help keep Americans “experimenting with the problems.” difficulties associated with the pandemic ”in their homes. The money is allocated to states, Native American tribes and American territories.
The Landlord Assistance Fund is separate from the $ 47 billion the federal government gives states to provide rent assistance to tenants facing eviction, which was also included in the US bailout.
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