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
Developed and created by SC Legal Services, 2013
Purposes
Help homeowners avoid foreclosureOr
Transition from homeownership to rental
Developed and created by SC Legal Services, 2013
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
Developed and created by SC Legal Services, 2013
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
Developed and created by SC Legal Services, 2013
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
Developed and created by SC Legal Services, 2013
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
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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
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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)
Developed and created by SC Legal Services, 2013
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
Developed and created by SC Legal Services, 2013
Developed and created by SC Legal Services, 2013
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
Developed and created by SC Legal Services, 2013
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
Developed and created by SC Legal Services, 2013
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
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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
Developed and created by SC Legal Services, 2013
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
Developed and created by SC Legal Services, 2013
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
Developed and created by SC Legal Services, 2013