New Texas Program for Delinquent Mortgage Payments and Property Taxes

Officials in Montgomery County issued a press statement on March 15 informing citizens of a new Texas program to assist homeowners facing late payments as a result of the pandemic in order to avoid foreclosure. These funds are allocated to the state of Texas through the federal government’s American Rescue Plan Act in response to the pandemic. The fund has $840 million and will offer support until funds are depleted or until December 31, 2026, if funds must be spent. These funds are provided in a form of a grant and do not need to be repaid.

For more information on getting a grant and also learning about refinance programs, take a look at this.

According to Kristina Tirloni, senior communications adviser for the TDHCA “There are two categories of relief funds for eligible households. One is past due mortgage payments where eligible homeowners can receive up to $40,000.00 in relief funds. The other category is for past due property taxes, insurance or association fees where eligible homeowners can receive up to $25,000.00.”

To qualify, homeowners must:

• Own and occupy a home in Texas as a primary residence 
• Experienced a qualified financial hardship after January 21, 2020, such as lost income or increased expenses due to the pandemic
• Have a household income at or below 100% Area Median Income (AMI) or 100% of the median income for the United States, whichever is greater
• And also have fallen behind on one or more of the following payments:
  • Mortgage loans
  • Property taxes
  • Property insurance
  • HOA/condo association fees

“Homeowners that have delinquent taxes can apply to the program, and if they qualify, TDHCA will send a check for the delinquent taxes to my office to avoid foreclosure,” said Tammy McRae, Montgomery County tax assessor-collector, in the March 15 news release. “The payment is a grant, not a loan. I encourage all homeowners to apply who qualify and have delinquent taxes.”

For more information on getting a grant and also learning about refinance programs, take a look at this.

Homeowners are required to submit the following documents when applying: identification card, mortgage statement, proof of occupancy (such as a utility bill), income documentation (such as pay stubs), and signed program documents. Furthermore, payments are sent directly to the mortgage servicer or property charge payee (tax authority, insurance company, or HOA) once the homeowner’s application is approved. So, for more information and applying, visit the official site.