FHA Offers Relief to Senior Homeowners Impacted by COVID-19 with HECM Property Charge Repayment Plan
The COVID-19 Home Equity Conversion Mortgage (HECM) Property Charge Repayment Plan is a new initiative recently put forth by the Federal Housing Administration (FHA) to assist senior homeowners who may have been impacted by the COVID-19 pandemic and have fallen behind on their property charge payments. This program aims to provide a solution for older homeowners to catch up on missed payments and retain their homes.
The HECM property charge repayment plan is a flexible option for homeowners, as it allows mortgage servicers to offer eligible homeowners a repayment period of up to 60 months to pay back any property charges advanced by the servicer. The plan is designed to provide relief to those who have been financially impacted by the pandemic, and is open to all seniors regardless of their prior repayment history or the amount they owe.
One of the key features of the plan is that it is available to those who have applied for assistance from the Homeowner Assistance Fund (HAF). As long as the combined funds from the HAF and the borrower’s ability to repay cover the delinquent charges, the repayment plan can be initiated. Additionally, the plan requires only a verbal statement from the borrower indicating they have been impacted by COVID-19 as verification of hardship.
Another important aspect of the plan is that it allows mortgagees to initiate the plan at any point within one year of the end of the COVID-19 National Emergency. This means that homeowners can take advantage of the plan even if their default did not occur during the emergency.
Overall, the COVID-19 Home Equity Conversion Mortgage (HECM) Property Charge Repayment Plan is designed to provide an additional layer of support for senior homeowners who may have been impacted by the pandemic and have fallen behind on their property charge payments. This program is an important opportunity for seniors to catch up on missed payments and retain their homes, as they struggle with financial difficulties due to the COVID-19 pandemic.
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