Application Window Now Open for Housing Assistance Funding Program

On August 2, 2023, at 10 a.m., the Oregon Housing and Community Services (OHCS) is set to recommence the acceptance of new applications for the Oregon Homeowner Assistance Fund (HAF) program. This vital initiative is aimed at providing temporary financial relief to homeowners who have been severely impacted by the COVID-19 pandemic.

It is estimated that the program’s remaining funds will be sufficient to aid approximately 500 additional qualifying homeowners. This federal emergency relief program offers support to those grappling with significant financial hardship due to the pandemic, helping them address their overdue mortgage payments and other housing-related expenses. Furthermore, the HAF program offers ongoing payment assistance to a select number of homeowners with low to moderate incomes.

On May 31, 2023, the OHCS temporarily suspended the acceptance of new applications to evaluate the existing applications in the queue, allowing them to gauge the remaining HAF funds that could be allocated to future applicants. Despite the pause, the program persistently provided support to the most at-risk homeowners facing active foreclosure.

Ryan Vanden Brink, the Assistant Director of Homeowner Assistance Programs, urged Oregon families affected financially by the pandemic and now at risk of foreclosure to review the HAF eligibility requirements. He encouraged those who meet these conditions to submit an application promptly. He also emphasized the importance of homeowners who are struggling with their mortgage payments to reach out to their mortgage service provider or a free housing counselor at a state-approved homeownership center without delay.

Upon its reopening, the HAF program will focus primarily on homeowners currently in active foreclosure, as well as those who are traditionally underserved by mortgage markets. Interested homeowners can check their eligibility and apply online on the program’s official website, oregonhomeownerassistance.org, starting from 10 a.m. on August 2, 2023.

However, it should be noted that the HAF funding is limited, and priority will be given to Oregon households that face the highest risk of foreclosure. The program will close once the available $72 million funding for homeowners is exhausted. Therefore, even if homeowners meet the eligibility requirements, there’s no assurance their application will be granted funding. Other loss-mitigation alternatives will depend on a homeowner’s particular mortgage and their mortgage servicer. Homeowners are advised to consider all potential options.

Free assistance from certified housing counselors is available to homeowners throughout the state, offering valuable insights on budgeting tools, evaluating potential options to retain their homes, such as mortgage modifications, adding deferred payments to the end of a mortgage, or applying for HAF support. These counselors are experienced professionals who can help homeowners liaise effectively with their mortgage servicers.

Homeowners should be aware that amidst the ongoing crisis, some housing counseling agencies may experience a delayed response time. The combination of increased demand for their services and the adoption of remote working policies to ensure the safety of their staff could potentially prolong the waiting period.

Alongside seeking guidance from a certified housing counselor, it’s also crucial for homeowners in Oregon to establish direct communication with their mortgage servicers and lenders. By doing so, homeowners can gain insight into the available mortgage assistance and foreclosure prevention programs tailored to their needs. Direct communication with lenders and servicers not only avails additional protections for homeowners but also provides them with a longer timeframe to weigh their options effectively.

Avoiding Fraud

The Oregon Department of Consumer and Business Services underscores the importance of exercising extreme caution when homeowners are approached with offers from unauthorized individuals or companies. Homeowners are urged not to divulge any financial or personal information without first verifying the licensing status of the company or individual in question. It’s also worth noting that there are no costs associated with applying for the HAF program or arranging a meeting with an Oregon housing counselor.

Homeowners should remain vigilant for common red flags that may signify a potential scam. If homeowners suspect they have been approached by a scammer, they are encouraged to file a report with the Consumer Financial Protection Bureau, the Oregon Department of Justice, or the U.S. Treasury’s Office of the Inspector General.

To verify the licensing status of a lender, homeowners can visit the Division of Financial Regulation’s licensing page and compare the provided information with the lender’s Nationwide Multistate Licensing System (NMLS) license number. It’s mandatory for this number to be included in all promotional materials and should be readily accessible. To check the validity of a housing counseling agency with the state, homeowners can confirm if they are listed on the OHCS website.