Developed and created by SC Legal Services, 2013 South Carolina Homeownership Employment Lending...

Developed and created by SC Legal Services, 2013

South Carolina Homeownership Employment

Lending Program (SC HELP)

Andrea E. Loney, EsquireExecutive Director

Funding Source of SC HELP

$295 Million from the U.S. Department of Treasury’s Housing Finance Agency Innovation Fund (Hardest Hit Funds).

To South Carolina State Housing Finance & Development Authority.

South Carolina Homeownership & Employment Lending Program established to administer


Purposes

Help homeowners avoid foreclosureOr

Transition from homeownership to rental


Impact of Foreclosure

Reduction in property taxes Reduction in property value Increase in crime Increase in domestic violence Increase in school problems Increase in stress on extended family


Eligible Borrowers Responsible Borrowers

Unemployed – getting unemployment compensation or it ended within the last 12 months

Under-employed or reduced income/hardship because of death of spouse, catastrophic medical expenses, divorce, disability, etc.

Self-employed with reduction in income


AMOUNT OF BENEFITS

A. Five Year Forgivable Loans

1. Unemployed; under-employed; self-employedcan get monthly mortgage payment – up to $36,000 or 24 months

(whichever comes first)

2. Direct Loan (reduced income) – up to $36,000 on past due amount

3. Combined Assistance – pays past due mortgage (direct loan) up to $25,000 and makes monthly payments for a combined total of $36,000


Amount of Benefits, Cont’d.

B. Grant

1. Property Disposition Assistance: move from home

ownership to rental - $5,000

a. Application with SCHELP completed FIRST

b. Permission for short-sale or deed-in-lieu of

foreclosure granted by mortgage company

c. Money distributed AFTER execution of deed

completed


General Information

1. Hardship Need not be delinquent

Lender must agree to participate in SC HELP

Value of home -- $729,500

Mobile home taxed as real property

Owner occupied

Minimum of 24 months homeownership history


Types of Information Needed

Everyone either on mortgage or deed must sign Complete application online or call the toll-free number for

assistance Hardship letter Property tax bill Bank statements Tax returns w/ W-2 Income information Deed and mortgage account information 2 most recent pay stubs (if paid twice monthly) 4 most recent pay stubs (if paid every week)


How to Apply

Homeowners may call South Carolina Legal Services:

1 (888) 257-1988

Homeowners may also submit an application at www.SCMORTGAGEHELP.com

Or call: 855 HELP 4 SC



The Home Affordable Modification Program

(HAMP)

HAMP

This program was issued as a part of the Making Home Affordable initiative to incentivize modification of mortgages.

Requires screening of all loans by

participating servicers, subject to investor restrictions

Provides cash incentives for participating

servicersDeveloped and created by SC Legal Services, 2013

How to Apply for HAMP

Must complete and provide the following to your HAMP participating mortgage servicer:

1) Request for Mortgage Assistance Form 2) IRS Form 4506T-EZ or 4506-T3) Verification of Income


Some General HAMP Eligibility Requirements

Borrower obtained mortgage on or before January 1, 2009.

The property has not been condemned

Borrower owes up to $729,750 on primary residence or single unit rental property


Some General HAMP Eligibility Requirements,

continued….

Borrower has a financial hardship and is either delinquent or in danger of falling behind on mortgage payments

*** Non-owner occupants must be delinquent in order to qualify

Borrower has sufficient, documented income

to support a modified payment***Must be 31% of borrower’s gross monthly income

Borrower gets trial period plan of 3 months


A Borrower Should Apply for HAMP IF:

A borrower needs to obtain a permanent modification of his/her mortgage with lower monthly mortgage payments

HAMP does NOT help pay monthly

mortgage payments, arrearages, or provide funds for families to move


A Borrower Should Apply for SC Help IF:

A borrower needs help making his/her monthly mortgage payments on a temporary basis

A borrower needs funds to move from home

in foreclosure or about to be in foreclosure

A borrower needs help to pay arrearage in the amount of $20,000 or less to make mortgage current


A Borrower Applying for Both HAMP and SC Help

If a borrower is going to apply for HAMP, then the borrower should first apply to SC Help or do so simultaneously, if the borrower is in arrears on his/her mortgage.

SC Help does not usually pay arrearages for a borrower who has already obtained a Home Affordable Modification.


Developed and created by SC Legal Services, 2013 South Carolina Homeownership Employment Lending...

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