The Arizona Dept. of Housing has started a new program called Save My Home AZ to help underwater homeowners avoid foreclosure and keep their home by reducing the principal amount owed on the home.
Here is a quick run down on how it works. Eligible homeowners will receive assistance of up to $50,000 to permanently reduce the principal owed and make their mortgage payment affordable and sustainable. The assistance comes in the form of a NO payment, NO interest 10 year loan the balance of which is reduced automatically over time at no cost to the homeowner.
You may be eligible for the program if you can answer “yes” to the following;
- Own and occupy a one to four-unit home located in Arizona.
- Your original loan amount is equal to or less than $729,750.
- Have a fixed rate first lien mortgage.
- Have a monthly mortgage payment (including taxes, insurance and homeowners association dues) greater than 31% of your monthly gross (pre-tax) income.
- Have a mortgage payment that is not affordable due to a financial hardship that can be documented and meets hardship qualifications such as reduction on income, spouse loss of job, disability, illness, or divorce.
Funding for this program is limited so act fast. Statistics show that 70% of homeowners faced with foreclosure never seek help. Don’t let this by you or someone you know. Take advantage of this program or other options to avoid foreclosure, such as a short sale.
As always, if you have any questions or if there is anything I can be of help with please let me know.