HEMAP: Model Pennsylvania Foreclosure-Prevention Program Shuttered
As of June 30, 2011, a popular Pennsylvania foreclosure-prevention program was closed down for lack of adequate public funding. The legislature had only appropriated $2 million to the Homeowners Emergency Mortgage Assistance Program for the next fiscal year and the Pennsylvania Housing Finance Agency responded that it couldn't run HEMAP without more money.
December 22, 2011
HEMAP: Model Pennsylvania Foreclosure-Prevention Program ShutteredAs of June 30, 2011, a popular Pennsylvania foreclosure-prevention program was closed down for lack of adequate public funding. The legislature had only appropriated $2 million to the Homeowners Emergency Mortgage Assistance Program for the next fiscal year and the Pennsylvania Housing Finance Agency responded that it couldn't run HEMAP without more money.
HEMAP was started by the state in 1984 mainly to help homeowners struggling with their mortgage payments because of urban job loss in the steel industry. The program stood the test of time and was lauded by many as highly successful. According to the Pittsburgh Tribune Review, HEMAP has saved about 40,000 homes from foreclosure over the years.
The premise is simple. A HEMAP loan helps homeowners suffering from job loss catch up on past-due payments and make ongoing mortgage payments. When the homeowner finds employment, the loan is over, interest starts to accrue and the homeowner begins making modest monthly payments to repay it. HEMAP was praised for being easy and cheap for the government to administer, and for having a high repayment rate, perhaps in part because of tight applicant screening.
State legislators are showing interest in solving the HEMAP funding problem. For example, in November 2011, a bill was introduced in the House that would provide funds to HEMAP from natural gas-extraction taxes. In early December 2011, Pennsylvania State Senator LeAnna Washington, D-Philadelphia, indicated that she will introduce a bill that permanently funds HEMAP by dedicating certain tax revenue from Pennsylvania casinos.
Housing advocates are watching with interest to see if HEMAP is restored. If you are having trouble making your mortgage payments or face foreclosure, an experienced attorney can educate you about your options, such as filing Chapter 13 bankruptcy, obtaining a short sale or refinancing.
Article provided by Joseph R. Viola, P.C.
Visit us at http://www.jrviola.com