872 how long does it take for texas mortgage relief program approval

How Long Does It Take for Texas Mortgage Relief Program Approval?

Kevin O’Leary June 29, 2024 0

Texas Homeowner Assistance Fund (TXHAF) Overview

The Texas Homeowner Assistance Fund (TXHAF) was established to provide critical support to homeowners facing financial hardship due to the COVID-19 pandemic. Created through the American Rescue Plan Act of 2021, this mortgage relief program is designed to help eligible Texas homeowners stay in their homes and avoid foreclosure.

Eligibility Requirements for TXHAF

To qualify for assistance through TXHAF, homeowners must demonstrate that they have experienced financial hardship directly related to the COVID-19 pandemic after January 21, 2020. Eligible property types include single-family homes, condos, one- to four-unit properties, manufactured homes, and mobile homes.

Additionally, applicants must meet income limits, which are set at 100% of the area median income or 100% of the median income for the United States, whichever is greater. Homeowners must also prove that they own and occupy the property as their primary residence.

TXHAF Programs and Coverage

TXHAF offers several programs to address the various financial needs of homeowners impacted by COVID-19:

  • Mortgage Program: Provides up to $40,000 in assistance for past-due mortgage payments.
  • Property Charge Program: Offers up to $25,000 in assistance for overdue property taxes, insurance, and HOA fees.
  • Utility Payment Program: Helps with overdue utility bills and up to three months of prospective payments.

It’s important to note that assistance from TXHAF is structured as a grant and does not require repayment. The program particularly targets homeowners coming out of forbearance who are unable to make lump sum mortgage payments.

TXHAF Application Process and Timeline

Required Documentation for TXHAF Application

When applying for TXHAF assistance, homeowners must provide several key documents to verify their eligibility and financial situation:

Document Type Purpose
Mortgage statements Demonstrate past-due amounts and current mortgage status
Proof of income Verify household income and eligibility based on income limits
Proof of occupancy Confirm that the property is the applicant’s primary residence
Government-issued ID Establish the applicant’s identity and connection to the property

Applicants should ensure they provide accurate and complete information, as well as a frequently checked email address and reliable phone number for communication throughout the process.

Typical TXHAF Application Review and Approval Timeline

The TXHAF application review and approval process can take several weeks, depending on various factors such as the volume of applications received and the completeness of the submitted documentation. Once an application is submitted, homeowners can expect the following general timeline:

  1. Initial review for completeness and eligibility (1-2 weeks)
  2. Request for additional information, if needed (1-2 weeks)
  3. Final review and approval decision (2-4 weeks)
  4. Notification of approval or denial sent to applicant (1 week)
  5. Disbursement of funds to mortgage servicer or property charge payee (2-4 weeks)

If an application is denied, homeowners have a 30-day appeal period to provide additional information or documentation to support their case.

Assistance and Resources for TXHAF Applicants

Local Nonprofits and Housing Counselors

For homeowners who need help navigating the TXHAF application process, local nonprofits serve as intake centers, offering in-person assistance with submitting applications. These organizations can help ensure that all required documentation is provided and that the application is complete before submission.

Additionally, HUD-approved housing counselors are available to provide free guidance and support throughout the process. These trained professionals can answer questions, help gather necessary documents, and offer advice on working with mortgage servicers.

TXHAF Call Center and Customer Support

The TXHAF program operates a dedicated call center to assist applicants and answer questions related to the program. The call center is available Monday through Friday from 8 a.m. to 6 p.m. and offers support in multiple languages.

Homeowners can reach the TXHAF call center at 1-833-651-3874. Customer service representatives can provide information on eligibility requirements, application status, and payment disbursement.

For additional assistance, homeowners can also contact NBC 5 Responds at 844-573-7763. This service offers solutions for various financial concerns and can help guide homeowners through the TXHAF process.

TXHAF Program Impact and Future Outlook

TXHAF Assistance Provided as of 2023

As of 2023, the Texas Homeowner Assistance Fund has made a significant impact in helping homeowners affected by the COVID-19 pandemic. Key program statistics include:

  • Total funds paid out: $494,718,501
  • Total homeowners helped: 43,475
  • Average assistance per household: $7,000

The program aimed to prevent 35,000 home losses and bring 13,000 homeowners up to date on their property taxes. While TXHAF stopped accepting new applications in October 2023, it continues to process existing applications and disburse funds to approved homeowners.

Expected Long-term Impact of TXHAF on Texas Homeowners

The Texas Homeowner Assistance Fund is expected to have a lasting positive impact on the state’s housing market and overall economic recovery. By providing targeted assistance to homeowners facing pandemic-related financial hardships, TXHAF helps prevent foreclosures, maintain housing stability, and support local communities.

As more homeowners receive assistance and regain their financial footing, the program contributes to a more resilient housing market and reduces the ripple effects of foreclosures on neighborhoods and property values. Ultimately, TXHAF plays a crucial role in the long-term recovery and stability of Texas homeowners and communities in the wake of the COVID-19 pandemic.

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