The Minnesota Homeownership Center and Habitat for Humanity of Minnesota have entered into a partnership aimed at helping homeowners facing financial difficulties due to COVID-19 to keep their mortgages in good standing and avoid foreclosure.
The two organizations will administer up to $10 million in relief through Minnesota’s newly established COVID-19 Housing Assistance Program (CHAP)
To qualify for assistance, Minnesota households must meet all of the following criteria:
- Income at or below 300% of federal poverty guidelines, with a preference for those at or below 200% of federal poverty guidelines.
- Have an eligible expense incurred after March 1, 2020, that is past due. Housing assistance funds can only be used for eligible expenses incurred between March 1, 2020, and December 30, 2020.
- Be unable to make one or more payments owed because of the public health emergency due to unemployment, illness, or another COVID-19 related issue.
The program covers past-due housing expenses such as:
- Mortgage payments
- Rent payments
- Contract for deed payments
- Manufactured home park lot rents and payments
- Utility payments
- Homeowners Association fees
For more details go to the Minnesota Home Ownership Center
I’ll never forget the great housing crash of a decade ago where banks foreclosed and then turned around and sold the houses at much lower prices making the houses affordable for new owners.
The banks made it through the foreclosure crisis and remained profitable while some homeowners never recovered.