Home » What is Indiana’s Homeowner Assistance Fund and what does it do for struggling homeowners?

What is Indiana’s Homeowner Assistance Fund and what does it do for struggling homeowners?

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Homeowner Assistance Fund Established through the American Rescue Planning Act in 2021 to address COVID-19-related setbacks. The Indiana Homeowners Assistance Fund is the state fund for the Hoosiers. One listener wondered why the application was taking so long to process, and that others were struggling with foreclosures in the process.

John Brengle is an attorney with Indiana Legal Services. He explained that once the application for the program begins, the bank will not be able to make a foreclosure.

“If they have not filed a foreclosure, or have already filed a foreclosure, they cannot proceed with the foreclosure as long as the application is pending,” he said.

If the application is approved and the mortgage related help is distributed, the foreclosure will be denied. If the application is not approved, the foreclosure can proceed.

According to the IHAF Application portal, There were more than 8,000 applications. Of these applications, approximately 1,400 have been approved, over 2,000 have been denied, and approximately 1,500 are awaiting response.

“Keep in regular contact with your assigned homeowner counselor,” Brengle said for those awaiting a response.

This program helps with mortgage principal and interest, homeowners association fees, property taxes, and other fees. The loan itself is offered as a 5-year forgivable loan. 20% of the loan is forgiven each time the individual stays at home.

to qualify The program allows Hoosier homeowners who are experiencing financial hardship due to the COVID-19 pandemic, own one mortgaged home as their primary residence, and have an income of 150% or less of their mortgage. There must be area average income. There are also additional underwriting criteria in certain circumstances.

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Despite this guidance, Brengle said anyone in need of financial assistance should apply.

“Don’t assume that you are ineligible just because you have never had COVID. Go ahead and fill out the application – there may be some circumstances that qualify you. ” he said.

He said anyone involved in the land deal was ineligible.

This is also a one-time program. Eligible Hoosiers will receive $35,000 only once.

Contact reporter Violet at [email protected] or follow her on Twitter: @ComberWilen.

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