Mortgagerateslocal.com – If you are a homeowner in Virginia who has been struggling to pay your mortgage due to the COVID-19 pandemic, you may be eligible for a new program that can provide you with financial assistance and prevent foreclosure by the name Virginia Mortgage Relief Program.
The Virginia Mortgage Relief Program, or VMRP, is a state-funded initiative that aims to support and ensure housing stability across the commonwealth during this unprecedented crisis.
The VMRP is a valuable opportunity for homeowners who are facing financial difficulties due to the COVID-19 pandemic and need help with their mortgage or other housing-related expenses.
By applying for the VMRP, you can save your home from foreclosure, reduce your financial stress, stay in your community, and improve your quality of life and your mental health. We will explain what the VMRP is, how it works, who can apply, and how to get started.
What is the Virginia Mortgage Relief Program?
The Virginia Mortgage Relief Program (VMRP) is a program that was launched by Virginia Housing, a state agency that provides affordable housing opportunities and resources for Virginians. The VMRP is funded by the Homeowner Assistance Fund (HAF), which is part of the American Rescue Plan Act that was passed by Congress.
The HAF allocated $258 million to Virginia to help homeowners who experienced a pandemic-related financial hardship and needed help with their mortgage or other housing-related expenses. The VMRP is designed to help these homeowners avoid default, foreclosure, or displacement by providing them with up to $50,000 in assistance, depending on their need and the availability of funds.
How does the VMRP work?
The VMRP works by providing eligible homeowners with direct payments to their mortgage servicers or other housing-related entities to cover their past due amounts and/or future payments. The VMRP can help homeowners with the following types of expenses:
- Mortgage reinstatement: This is the amount of money needed to bring a mortgage current and avoid foreclosure. The VMRP can pay up to 18 months of past due mortgage payments, including principal, interest, taxes, and insurance.
- Mortgage payment assistance: This is the amount of money needed to help a homeowner afford their monthly mortgage payments. The VMRP can pay up to 18 months of future mortgage payments, including principal, interest, taxes, and insurance.
- Other housing-related expenses: These are the other costs associated with owning a home, such as homeowner’s insurance, flood insurance, mortgage insurance, homeowner’s association fees, condominium fees, property taxes, personal property taxes, and lot rental fees for mobile homes. The VMRP can pay up to 18 months of past due or future payments for these expenses.
The VMRP can provide assistance for one or more of these types of expenses, depending on the homeowner’s situation and need. The total amount of assistance cannot exceed $50,000 per household. The assistance is provided as a grant, which means that the homeowner does not have to repay it.
However, the homeowner must agree to certain terms and conditions, such as staying in their home for at least five years, participating in housing counseling, and cooperating with program monitoring and evaluation.
Who can apply for the VMRP?
The VMRP is open to homeowners who meet the following eligibility criteria:
- Own a primary residence in Virginia: The homeowner must live in the property that they are seeking assistance for, and it must be their main residence. The property can be a single-family home, a townhouse, a condominium, a duplex, a triplex, a quadruplex, or a mobile home. The property must be located in Virginia and have a valid address.
- Experienced a pandemic-related financial hardship: The homeowner must have suffered a financial hardship that was caused by or worsened by the COVID-19 pandemic. The hardship must have must have affected the homeowner’s ability to pay their mortgage or other housing-related expenses. The hardship could be due to job loss, business closure, reduction in income, difficulty finding new employment, death of a spouse or co-borrower, increased expenses due to health care, childcare, or quarantine, or any other reason related to the pandemic.
- Be behind on their mortgage or other housing-related expenses: The homeowner must have a delinquency amount of $50,000 or less on their mortgage or other housing-related expenses. The delinquency amount is the total amount of past due payments that the homeowner owes to their mortgage servicer or other housing-related entity. The homeowner must also be at risk of foreclosure or displacement due to their delinquency.
How to apply for the VMRP?
The VMRP is currently accepting applications from eligible homeowners who need assistance. The application process is simple and can be done online or by phone. Here are the steps to apply for the VMRP:
- Visit the VMRP website: The first step is to visit the VMRP website at www.virginiamortgagerelief.com. There, you can find more information about the program, check your eligibility, and start your application. You can also access the VMRP application checklist, which lists the documents and information that you will need to submit with your application.
- Create an account and complete the application: The next step is to create an account on the VMRP website and fill out the online application form. You will need to provide some basic information about yourself, your property, your mortgage, your financial hardship, and your income and expenses. You will also need to upload copies of the documents that verify your eligibility, such as your mortgage statement, your proof of income, your proof of hardship, and your identification. You can save your application and return to it later if you need more time to complete it.
- Submit your application and wait for a decision: The final step is to submit your application and wait for a decision from the VMRP. The VMRP will review your application and determine if you are eligible for assistance and how much assistance you can receive. The VMRP will notify you of the decision by email or phone within 30 days of receiving your complete application. If you are approved, the VMRP will send the payment directly to your mortgage servicer or other housing-related entity on your behalf. You will also receive a confirmation letter and a grant agreement that outlines the terms and conditions of the assistance.
If you have any questions or need any help with your application, you can contact the VMRP call center at 833-OUR-VMRP (833-687-8677) from 8 a.m. to 8 p.m. EST/EDT, Monday through Friday. You can also check the status of your application by logging into your account on the VMRP website.
Why should you apply for the VMRP?
The VMRP is a valuable opportunity for homeowners who are facing financial difficulties due to the COVID-19 pandemic and need help with their mortgage or other housing-related expenses. By applying for the VMRP, you can benefit from the following advantages:
- Save your home from foreclosure: The VMRP can help you bring your mortgage current and avoid foreclosure, which is the legal process by which your lender can take back your property if you fail to pay your mortgage. Foreclosure can have serious consequences for your credit score, your financial future, and your emotional well-being. By preventing foreclosure, the VMRP can help you preserve your home equity, your credit rating, and your peace of mind.
- Reduce your financial stress: The VMRP can help you reduce your financial stress by covering your past due or future payments for your mortgage or other housing-related expenses. This can free up some of your income and allow you to pay for other essential needs, such as food, utilities, health care, and education. By reducing your financial stress, the VMRP can help you improve your quality of life and your mental health.
- Stay in your community: The VMRP can help in your community and avoid having to move to a different place. Moving can be costly, disruptive, and stressful, especially during a pandemic. You may have to leave behind your friends, family, neighbors, and support network. You may also have to face challenges such as finding a new home, a new job, a new school, and a new health care provider. By staying in your community, the VMRP can help you maintain your social ties, your sense of belonging, and your access to local resources and services.
What are some tips to make the most of the VMRP?
The VMRP is a great opportunity for homeowners who need help with their mortgage or other housing-related expenses, but it is not a guarantee. The VMRP has limited funds and may not be able to assist everyone who applies. Therefore, it is important to follow some tips to make the most of the VMRP and increase your chances of getting approved and receiving assistance. Here are some tips to keep in mind:
- Apply as soon as possible: The Virginia Mortgage Relief Program is operating on a first-come, first-served basis, which means that the sooner you apply, the better your chances of getting assistance. The VMRP started accepting applications on November 15, 2023, and will continue until the funds are exhausted or until September 30, 2025, whichever comes first. However, the funds may run out before the deadline, so do not delay and apply as soon as possible.
- Gather all the required documents and information: The VMRP requires you to submit certain documents and information to verify your eligibility and your need for assistance. These include your mortgage statement, your proof of income, your proof of hardship, and your identification. You can find the complete list of required documents and information on the VMRP website or on the VMRP application checklist. Make sure you have all the documents and information ready before you start your application, and upload clear and legible copies of the documents to your online application. If you are missing any documents or information, your application may be delayed or denied.
- Be honest and accurate: The VMRP requires you to provide honest and accurate information about yourself, your property, your mortgage, your financial hardship, and your income and expenses. Do not lie, exaggerate, or omit any information that may affect your eligibility or your need for assistance. The Virginia Mortgage Relief Program will verify the information that you provide and may ask you for additional documents or information if needed. If you provide false or misleading information, your application may be denied or your assistance may be revoked. You may also face legal consequences for fraud or perjury.
- Stay in touch and follow up: The Virginia Mortgage Relief Program will communicate with you by email or phone throughout the application process. Make sure you provide a valid email address and phone number that you check regularly and that you can receive messages from. Check your email and voicemail frequently and respond to any messages from the VMRP as soon as possible. If you have any questions or concerns, do not hesitate to contact the VMRP call center or log into your account on the VMRP website. You can also check the status of your application online and see if there are any issues or updates that you need to be aware of.
Conclusion
If you are a homeowner in Virginia who meets the eligibility criteria, you can apply for the VMRP online or by phone. The application process is simple and can be done in a few steps. However, the VMRP has limited funds and may not be able to assist everyone who applies. Therefore, it is important to apply as soon as possible, gather all the required documents and information, be honest and accurate, and stay in touch and follow up.
