“It’s all coming from savings, and it’s kind of going down,” she said.
Each program sets its own rules, including the duration of assistance, the amount per household and the expenses covered. New York, for example, will provide up to $ 50,000 for costs, including mortgage payments, utilities, broadband service and overdue property taxes, with payments going directly to loan officers, utility providers or tax authorities.
The Ho-Chunk Nation plans to use a large chunk of the $ 3 million it received for heating costs, Whitegull said. “The majority of these funds are to be used for utility payments, natural gas, propane and wood,” he said. “The main sources of heating. “
This flexibility is important because of the success the federal government has had in helping homeowners avoid foreclosure. In September, 3,900 new foreclosures were initiated by banks in the United States, the third lowest monthly total on record, according to Black Knight, a real estate and mortgage data analysis company. And the number of borrowers relying on mortgage payment deferrals is at its lowest level since the start of the pandemic.
“There was significant stress, but we did a good job of minimizing it,” said Andy Walden, economist and vice president of market research for Black Knight.
The Homeowners Assistance Fund was modeled on the $ 9.6 billion Hardest hit fund. This fund was created in the aftermath of the 2008 housing crisis, when more than seven million people lost their homes in a collapse caused by a plethora of subprime loans and variable rate mortgages. A recent university study found that the program, which helped 418,156 homeowners in 18 states, reduced participants’ risk of default or foreclosure by 40%.
For the Homeowners Assistance Fund, Treasury officials will allow states to allow applicants to pay for renovations to make their homes more livable for extended families. They also broadened the definition of ownership to include residences purchased with a non-traditional home loan, such as household loans often used for mobile homes, and financing arrangements called contract for deed, an installment loan provided by the seller of a house. A review by Pew Charitable Trusts found that more than a dozen states have submitted plans to cover these homeowners, who often cannot get traditional mortgages.