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DCA: HomeSafe Georgia will forgive up to $50,000 to reinstate mortgages for struggling homeowners
Summary
DCA described HomeSafe Georgia as a one-time reinstatement program backed by federal recovered-TARP funds; assistance up to $50,000 is secured as a subordinate mortgage and forgiven 20% per year over five years, and DCA says the program has spent about $290 million and helped roughly 14,000 homeowners.
Brenda McGee, homeownership division director at DCA, told the committee that HomeSafe Georgia provides one-time assistance—up to $50,000—to reinstate mortgage payments for homeowners who have fallen behind due to temporary job loss, medical or family events. McGee said the assistance is recorded as a second or third mortgage and is forgiven at 20% per year over five years if the homeowner remains in the home.
McGee said the funding for HomeSafe was allocated to states in 2011 from recovered Troubled Asset Relief Program (TARP) money and that DCA has spent about $290,000,000 on the program to date, helping about 14,000 homeowners. She cautioned that the remaining federal allocation for the program is finite: DCA expects the program will end when the remaining $38,000,000 of the original $370,000,000 is used.
