Speaker Calls
for More Funding of Program Aiding Distressed Home Owners
For More Information, Contact: Joe Fulgham
For Immediate Release:
Speaker of the House Terry
Spence (R-Stratford) is asking state budget writers to set aside $1 million for
the Delaware Emergency Mortgage Assistance Program.
In her proposed FY 2009
budget unveiled last month, Gov. Minner called for
cutting program funding in half, from the current budget of $500,000 to
$250,000.
The Delaware State Housing
Authority (DSHA) describes the program, commonly referred to as the DEMAP,
as assistance to help Delaware home owners avoid “residential mortgage foreclosure(s)
that result from circumstances beyond the homeowner's control”.
Under the program, a homeowner in distress can get a low-interest loan
of up to $15,000 to pay his/her mortgage.
“This program is not aimed
at rescuing the people who got into trouble as a result of taking out a
sub-prime mortgage,” Speaker Spence said.
“It’s primarily intended to help residents who find themselves in danger
of losing their homes because of a temporary situation and need some assistance
until they can get back on their feet.”
Gov. Minner’s
proposal to slash DEMAP funding comes despite figures that show the current
funding to be woefully inadequate. Lt.
Gov. John C. Carney who chairs the Foreclosure Task Force, said demand for the
program “is large and growing”.
Yesterday, Lt. Gov. Carney announced that the Delaware State Housing
Authority was shifting $500,000 from other programs into DEMAP to help address
a projected $720,000 shortfall for the current fiscal year ending June 30th.
“There’s a lot of need for
this out there,” Speaker Spence said.
“While the Housing Authority transfer deals with the current situation,
I’d like to get the Joint Finance Committee to put more money into the new
budget so we’re not facing another, larger shortfall next fall. We know the demand will there, so I think we
need to plan ahead.”
Among the DEMAP’s eligibility requirements applicants must…
1. …be Delaware residents.
2. …have a family gross income not
exceeding 115% of the state median
income (currently $77,452).
3. …be 60 days or more delinquent in
monthly mortgage payments at the
time of the
initial meeting with the housing counselor.
4. …have the foreclosure notice when
submitting application to DSHA.
5. …have held a good mortgage/credit
history prior to the current
delinquency.
6. …be suffering financial hardship beyond
his/her control.
7. …demonstrate a reasonable prospect of
being able to resume mortgage
payments in the near future.
8. …currently have no more than two
mortgages on the subject property.
Speaker Spence concedes
that, like home owners, the state is also being impacted by the slowing economy
and that finding increased funding for anything will be a challenge.
“It’s clear to me that with
the economy slowing we must put more money, not less, into this program,”
Speaker Spence said. “People need this
assistance most when times are tough.”
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