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Deadline looming for D.C. HomeSaver foreclosure prevention program

The HomeSaver program offers a grant of up to $60,000 that does not need to be repaid. (iStock)

Homeowners in D.C. who are struggling to make their mortgage payments have a small window to get help from the D.C. Housing Finance Agency. The HomeSaver foreclosure prevention program from the DCHFA was reopened in February to help D.C. homeowners.

The program, which was initially launched in 2010 to help homeowners during the housing crisis and recession, currently has $4 million available to help. However, the application deadline of May 14 at 5 p.m. is rapidly approaching.

The HomeSaver program offers a grant of up to $60,000 that does not need to be repaid. Homeowners can receive lump sum assistance and/or ongoing monthly mortgage payments as part of that $60,000. The property must be the homeowners’ primary residence, and the homeowners must have fallen behind on their mortgage payments because of unemployment, underemployment or another type of financial hardship.

Two types of assistance are available through the HomeSaver program, according to the DCHFA:

· Restore Assistance is available for homeowners who have suffered a financial hardship and who need a lump-sum payment to catch up on arrears, but who have sufficient resources to continue making their regular payments going forward. Restore Assistance may cover any property-related payments necessary to cure a default and prevent a foreclosure, including but not limited to mortgage payments, property taxes, hazard insurance, late fees, condo fees, homeowner’s association fees and legal fees.

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To qualify, the delinquency must be at least $2,500. The homeowners’ gross income cannot exceed 120 percent of area median income, which is equal to $140,640. The homeowners’ total housing payment must be 45 percent of their gross income or less.

· Unemployment and Underemployment Assistance aids currently unemployed and underemployed homeowners through a one-time payment of up to 16 months of mortgage and/or condo fee delinquency to bring the mortgage current. This component will also provide up to an additional 11 months of mortgage and/or condo fee payments going forward (total not to exceed 24 months payments) to keep the homeowner current. All final payments will be disbursed in December 2021 for those customers still enrolled in the program.

Applicants for this program must have been receiving unemployment benefits within the past 12 months or experienced a loss of at least 10 percent of their income within the past 12 months.

To be considered for assistance, homeowners must submit their application by 5 p.m. on May 14.

Applicants have until May 31 to complete the process by meeting with a housing counselor and providing supporting documentation for the application. Full program guidelines and the application are available here.

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