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DC Offers Program to Provide Relief to Homeowners Behind on Reverse Mortgages

by Nena Perry-Brown

While reverse mortgages have regained favor in the housing market, a DC agency is aiming to make the mortgages less risky.

Earlier this year, the DC Housing Finance Agency (DCHFA) launched the Reverse Mortgage Insurance & Tax Payment Program (ReMIT), a relief option for senior homeowners experiencing difficulty maintaining home-related payments. The $500,000 fund was approved during last year's budget cycle and applicants can seek assistance for delinquent taxes, homeowners' insurance, and other expenses which could lead to foreclosure.

“With ReMIT, we aim to prevent and reduce the number of foreclosures that are happening in D.C. as a result of delinquent tax and insurance payments,” DCHFA CEO Todd Lee said in a statement. A recent article in Housing Wire states that there are 2,246 reverse mortgage loans in DC, over 11 percent of which are delinquent. “DCHFA anticipates assisting at least 50 homeowners with reverse mortgages,” Lee said in the piece.

Eligible DC homeowners will be able to apply for one-time, zero-interest deferred loans of up to $25,000 for their primary residence. Qualified applicants must be at least 62 years old, have a reverse mortgage in their name, be "at risk" of foreclosure, and have a maximum income of $77,540. They must also be able to prove ability to cover future payments.

This article originally published at http://dc.urbanturf.com/articles/blog/dchfa-to-provide-relief-to-homeowners-behind-on-reverse-mortgages/15363

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