Since the beginning of the recent economic downturn, many consumers across the country have lost their jobs and struggled under the pressure of high mortgage payments. However, homeowners in Alabama are now getting some much-needed assistance.
The Alabama Housing Finance Authority is due to receive more than $160 million in federal foreclosure prevention funds as part of a national plan to help homeowners.
AHFA officials say the funds from the Hardest Hit Alabama program will help assist up to 10,000 families, who will each be eligible to apply for a $15,000 maximum subsidy. Potential applicants must not have less than $258,690 in mortgage payments, earn more than $75,740 and have their residence located within the state.
“Homeowners who have experienced a temporary loss of income can benefit from short-term assistance to help bridge the gap until they have restored their income,” Governor Robert Bentley.
The money will be loaned on a first-come, first-served basis and will require repayment when the homeowner decides to sell the home. Regardless, the funds will likely help many state residents avoid foreclosure and the costly credit damage it can cause.