PHOENIX - The Arizona Department of Housing admits its new Save My Home AZ program will have little impact.
The housing department recently announced the launch of the program which will use $125.1 million dollars of federal funds to assist just over 4,000 households.
According to ADOH Director Michael Trailor, this is really a pilot program.
“With a foreclosure rate that is currently second in the nation, it was pretty clear from the beginning that the $125.1 million allocation could not be impactful with respect to the sheer number of households needing assistance,” said Trailor.
He said the program was designed to meet the specific needs of Arizona’s crisis and is partly created in response to the short comings of the Obama Administration’s Home Affordable Modification Program.
There are plenty of qualifications you’ll need to meet in order to be one of those 4,000 households Save My Home AZ hopes to help, requirements that according to the department will target those with the best change of staying in their homes.
-There must have been some household reduction in income due to an extenuating circumstance since financing the home.
-Household income should at least support the cost of a mortgage for the current value of the home.
-Mortgage debt must be 120 percent above the market value of the home.
-You must be at least 60 days behind on your mortgage.
-The home must be a primary residence, not a rental property.
Underemployed households may also be eligible to receive temporary mortgage assistance for up to 24 months while they look for a job.
Trailor saidif you are about to lose your home to foreclosure the program probably won’t be able to help you, but if you are somewhere between just being “underwater” and losing your home you may qualify.
The biggest issue with this and all mortgage assistance programs is that the bank has to be on board.
"You can meet all of that criteria and if your bank's not willing to work with us there's nothing we can do to help you," Trailor said.
Currently Trailor said several local banks have agreed to participate in the program, but Bank of America is the only national lender participating.
Wells Fargo, Chase, CitMortgage and other big lenders have not signed on with Save My Home AZ.
For more information click Save My Home AZ or call (602) 771-1000.
Trailor said there are no programs available for those who are upside down on their mortgage but not in financial distress.
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