$168M Available to Tennessee Homeowners Facing Foreclosure
The Tennessee Homes Assistance Fund (TNHAF) was established on January 10th to help homeowners who have been harmed financially by the COVID-19 outbreak. A total of $168,000,000 in allocated funds will be provided to help families across the state who have been missing mortgage payments. The Homeowners Assistance Fund was established under Section 3206 of The American Rescue Plan Act of 2021.
“This is the government proving some funds to make good on what you lost of no fault of your own,” said Executive Director Ralph Perrey.
The TNHAF program will assist with eligible housing-related expenses that meet program guidelines up to the maximum assistance per household of $40,000.00. You don’t have to repay the assistance because it’s structured as a forgivable grant. These payments are delivered directly to the servicer and/or approved entities for qualified housing-related expenses. Once your application has been approved, you’ll be required to complete a homeowner education course, which will explain numerous alternatives for loss mitigation and budgeting, among other things, and will help you decide which option is best for you.
Some of the most important eligibility requirements include:
- Applicants must have experienced a qualified financial hardship after January 21, 2020 (Qualifying hardships are unemployment, underemployment (loss of income), death of an occupying spouse or co-borrower, or an increase in certain expenses directly related to COVID-19)
- Applicants must currently own and occupy the property as your primary residence
- Their annual household income must be less than $119,850.00
Those that meet the criteria can get one of three types of assistance:
- Reinstatement only – This option is for homeowners who have recovered from the COVID-related hardship and can afford their monthly payment going forward, but need assistance with the past due balance
- Reinstatement plus payments – This option is for homeowners who are still experiencing a reduction of income and need assistance with monthly payments for a limited period of time
- Reinstatement plus loss mitigation – This option is for homeowners who have experienced a long-term reduction of income and need to establish a more affordable monthly payment
Eligible homeowners may receive financial assistance to cover the following housing expenses:
- Mortgage payments
- Delinquent mortgage payments to bring the mortgage loan current.
- Housing-related costs resulting from a period of forbearance, delinquency, or default
- Homeowners’ insurance and flood insurance
- Past due homeowner and condo association fees/dues
- Delinquent property taxes to prevent tax foreclosures
“Even if you are behind 8 to 10 to 15 months, we can bring you current and you can resume the payments on your own as if that interruption never happened. And if you are not ready to resume those payments, we can make your payments for up to six months on your behalf,” said Perry.
The Tennessee Homes Assistance Fund TNHAF call center can be reached at 855-890-8073. The call center hours are Monday through Friday 7 am to 7 pm CST. If you wish to apply in person, you may request a referral to a HUD-certified counselor in your area who will be able to assist with your application.