HEMAP started in the early 1980s, when the Sheriff of Allegheny County (County Seat of which is the City of Pittsburgh) refused to sell foreclosed homes, when it was obvious the home owners were just suffering a temporary set back to the the massive closing of the Domestic Steel Industry (centered in Pittsburgh). The Court of Allegheny County back him, and that forced the State Legislature to do something. What was done was and is the Homeowners Emergency Mortgage Assistance Program (HEMAP).
HEMAP was changed in the late 1990s to reduce it costs, Prior to the late 1990s, HEMAP required you to be able to start payment on your mortgage within three years, in the late 1990s that was changed to Two years except during periods of High Unemployment, then it returned to three years (The High Unemployment part only kicked in about 2008).
To Get HEMAP, two things MUST be shown by the Homeowners, First is that the reason the home owner is behind in Mortgage Payments is NOT the Fault of the Home Owner (i.e. the Home Owner did not just stop paying, the Home owner could NOT pay do to something beyond the homeowners control i.e, laid off from work, became disabled, etc).
The Second test is that the Homeowner can start paying on the Mortgage within two years (Except in high Unemployment periods three years). One of the most common cases is when someone is disable but has NOT been ruled to be disabled by the Social Security Administration and we have to wait for a Social Security Administrating Law Judge hearing on the issue of disability. Other cases involve people who are looking for work, and once they find work can resume the mortgage payments.
One side note, the article cited says HEMAP must start to be paid back at the same time as the Mortgage, that is NOT true, HEMAP can be set up that HEMAP payments are only made once income increase OR the original mortgage is paid off.
HEMAP is the single most effective Mortgage Assistance program in the Nation, but since it FORCES banks to go through it AND accept its decision BEFORE any foreclosure can start, it was NOT on any bank's agenda when Obama set up his programs (Which were more to bail out the Banks then the Home Owners). In fact the Act 91 of 1983 (another name for the program) REQUIRES banks to inform home owners of HEMAP Mortgage Assistance at least 30 days BEFORE any actual foreclosure takes place. This is called in Pennsylvania an "Act 91" notice which MUST be mailed to any and all homeowners 30 days before Foreclosure is filed in any court. If the Homeowner requests "Mortgage Assistance" any foreclosure must wait till after HEMAP either approves or deny the request for assistance (Which can be monger the the 45 days mentioned in the Article). Upon any denial, the homeowner can appeal for a proper administrative hearing, and during that appeal, the Mortgage holder MUST continue to wait.
A Mortgage holder can continue on with the Foreclosure under three circumstances, First it is a Commercial property (This NOT under HEMAP), Second, if the Home owner NEVER files for Mortgage Assistance, or three, if after the Administrative Hearing, HEMAP Assistance is denied. I have had clients who was able to find work and begin payment on their mortgage without the Assistance just do to the delay (Technically these clients were part of those DENIED under HEMAP, but it still helped them save their home).
The Pennsylvania HEMAP Web Site for more information:
http://www.hemap.org/hemap/html/index.aspxFor More on HEMAP:
http://www.phfa.org/consumers/homeowners/hemap.aspxList of HEMAP QUALIFICATIONS:
https://www.hemap.org/hemap/secure/help.aspx?HelpID=HEMAPQualifications1. Your default was caused by financial hardship due to circumstances beyond your control.
2. You have a reasonable prospect of resuming full mortgage payments again within 24 months (36 months in times of high unemployment).
3. You have received an "Act 91 Notice” from your lender advising you that your mortgage is in default.
4, You had a good mortgage payment history before your current default, or a prior default was due to circumstances beyond your control.
5. You are not more than 24 months behind in your payments (36 months in times of high unemployment).
6. You are at least 60 days behind on your mortgage payments.
7. The house is in Pennsylvania.
8. You live in the house.
9. You own the house and your name is on the mortgage. (There can be more than one owner or borrower.)
10. The property is used primary for residential purposes; properties used primarily for commercial purposes or mortgage loans used for business purposes are not eligible.
11. The house is a single-family house or has no more than two living units.
12. You are not more than $60,000 delinquent on the mortgage, including interest, principle, and fees.
13. The mortgage is not an FHA purchase money mortgages, which are not eligible. FHA Title I home improvement loans are eligible.
The Reasons FHA loans are NOT eligible is technically FHA has their own system to handle such cases. Under Bush I, the duties to perform such assistance was transferred from the Federal Government to the banks as part of the FHA program, HEMAP, being a 1983 law, was passed while the Federal Government were still handling FHA Mortgage Assistance, not the present system when the Bank with the FHA loan is suppose to provide the assistance.
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