Georgia Offering Help With Mortgage
Those who are behind in their mortgage may be able to get relief through Georgia Mortgage Assistance. This program, aimed at helping those who were impacted by the 2020 pandemic, is administered through Georgia Community Affairs.
Even though the pandemic is over, the program is still taking applications. It is a program many aren’t aware of unless their mortgage company shares the information with them. That doesn’t always happen until a homeowner faces foreclosure when all options must be made available. However, even those who aren’t in that desperate situation can still take advantage of the program.
There are four steps to apply for this money. The homeowner must be the one to apply as the mortgage company can’t apply for you.
1) Pass the pre-screening.
There are pre-screening questions but they don’t determine eligibility. They do indicate whether you may be eligible and allow you to continue the online application.
2. Create an account. The account is created through the Georgia Community Affairs website. (https://georgiamortgageassistance.ga.gov/prescreening) The site also has answers to common questions and a helpful resources page.
3. Complete the online application with documents.
A list of documents is listed on the website but some of what is required are tax forms from certain years, among other documentation indicating how you were affected by the pandemic.
4. Sign and submit.
This is all done electronically so you can complete your application at home as long as you can upload all your documents. Some without scanners may need to visit a store like Staples to scan the documents. Some tax preparers like H&R Block have tax documents in PDFs that you can use.
5. Get updates.
Updates are sent to your account dashboard so you will need to pay attention. The state may ask for additional documentation so it’s important to check it regularly.
Keeping Your Home
This isn’t the only way to keep your home but this program will help those who are behind in their payments or facing imminent foreclosure due to losses during the pandemic. There are other things you can do.
Ask for a deferred payment or a home modification.
Many mortgage companies will help homeowners who ask. That’s because some federal regulations related to the pandemic require them to help. Depending on your situation, you can get delinquent amounts deferred for a few months until you get a new job or are in a better situation.
Home modifications are done a lot these days. Every bank and lender has different guidelines and rules about how this is handled but many will be accepted if you plan to stay in your home. Some banks call these programs “hardship programs” so be sure to use that term when asking about them.
Bankruptcy.
Bankruptcy is a last resort but it is an option to stay in your home. The one to file would be Chapter 13, which is a reorganization of expenses and a restructuring of debt. This will cost you because you will need to pay an attorney anywhere from $2,000 to $6,0000 but many require no upfront payment. Attorneys’ payments can be worked into the monthly trustee payment.
Bankruptcy is a five-year program. While it will affect your credit, you will see your credit score rise as you pay the trustee monthly because all your debt will be getting paid. The positive aspect is creditors can’t take your house, car, or other belongings while you’re in bankruptcy. All collection or repossession proceedings stop the moment you file.