TSD Memphis

Sat04192014

Business

A foreclosure relief option

The Keep My Tennessee Home – Tennessee’s Hardest Hit Fund program provides loans to unemployed or substantially underemployed homeowners who, through no fault of their own, are financially unable to make their mortgage payments. The Keep My Tennessee Home – Tennessee’s Hardest Hit Fund program provides loans to unemployed or substantially underemployed homeowners who, through no fault of their own, are financially unable to make their mortgage payments and are in danger of losing their homes to foreclosure. Tennessee is one of 18 states plus the District of Columbia that are receiving Hardest Hit Funds due to having an unemployment rate that is higher than the national average.

The Keep My Tennessee Home program will make homeowners’ payments on their mortgage and mortgage related expenses such as property taxes, homeowner insurance, homeowner association dues, and/or past-due mortgage payments that accumulated during a period of unemployment. The Hardest Hit Fund is being administered in Tennessee by the Tennessee Housing Development Agency (THDA).

Homeowners who qualify for financial assistance may receive up to 18 months of monthly mortgage payments and/or funds to pay past due mortgage payments to bring the mortgage current; these funds are paid directly to the loan servicer/lender. Homeowners in distressed counties were eligible to apply for this program as of Jan. 4, 2011.

Homeowners in all Tennessee counties will be eligible to apply for this program as of March 1. Homeowners with THDA loans were eligible to apply as of Jan. 4, regardless of county.

To qualify for the Keep My Tennessee Home program, a homeowner must meet the following eligibility requirements:

• Be unemployed or underemployed (a 50 percent reduction of income) through no fault of their own (not terminated for cause). The event or incident that results in unemployment or substantial underemployment must have occurred after Jan. 1, 2008.

• Have a mortgage for a single-family home or condominium (attached or detached) in Tennessee that they occupy as their primary residence. This includes manufactured homes on foundations permanently affixed to real estate that they own.

• Have a history of timely mortgage payments prior to the job loss/reduction of income, or no more than two 30- day late payments in the 12 months prior to the job loss/reduction of income.

• The combined amount of your mortgage principal, interest, taxes and insurance must be greater than 31% of your household income after the job loss/reduction of income.

• Not have more than six months’ reserves of liquid assets, that is, liquid assets equal to six months of their mortgage principal, interest, taxes and insurance.

• Have a household income less than $74,980.

• Have a total unpaid principal balance not exceeding $226,100.

(Meeting the basic criteria does not guarantee eligibility for the Keep My Tennessee Home program. For more information, visit www.thda.org.)

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