- Borrowers must have a record of making mortgage payments on time
- Household's yearly income may not exceed 120% of the area median income
- Household must have income reduced by at least 15% in two years due to sudden unemployment, underemployment or a medical condition
- The home must be the borrower's primary residence and at risk of foreclosure
Homeowners needing assistance: Piedmont Housing Alliance. HUD has further resources for foreclosure avoidance/assistance in Virginia.
Charlottesville / Albemarle area unemployment has more than doubled in the past two years.
While the rate is lower than nationally, median home prices are significantly higher than the national number, which means somebody who is unemployed or underemployed, let alone ill, may fall behind more quickly. This is a much-needed program. 1 in 4 Va mortgage holders owe more than their house is worth--whether they're employed or not--but having to face moving while jobless (unless it's for a new job) can be tragic.
The New Normal - Part I
The New Normal - Part II - Banks Halt Foreclosures Due to Widespread Fraud
"The New Normal" is a multi-part series looking at local and national issues impacting housing. The Federal Government has many programs (with varying degrees of success) in place to help homeowners avoid foreclosure or achieve a short sale. But the Gov't isn't just assisting current mortgageholders; the Federal Government owns or guarantees more than 96% of mortgages originating in the past two years.