The program will open to borrowers statewide later in 2021. Sign up for program updates.
The Maryland Homeowner Assistance Fund can help homeowners struggling with their mortgage payments or other housing costs due to the COVID-19 pandemic. This financial assistance will be in cooperation with the loss mitigation tools that will be provided by mortgage servicers.
The program will create a long-term sustainable and affordable mortgage as opposed to short-term assistance without a clear outcome. The fund offers two types of financial assistance:
Designed to offer a one-time payment of a delinquent mortgage amount and/or additional funds to facilitate a principal curtailment or rate reduction to right size ongoing mortgage payments to levels affordable to the homeowner.
Most mortgage servicers will work with their borrowers who are exiting forbearance or are in default. Servicers will generally utilize standardized loss mitigation strategies to lower monthly borrower obligations by 20%. The Homeowner Assistance Fund Mortgage Loan expands the servicers ability to help the homeowner avoid foreclosure or displacement for the long-term. This assistance will create mortgage payments that are sustainable to the homeowner’s “new normal.”
Designed to avoid imminent displacement (within 90-days) due to, but not limited to tax delinquency, chattel loan or land lease delinquency; homeowners association fee / condominium association fee delinquency; mortgage delinquency.
The department created a draft plan for the Homeowner Assistance Fund in response to the U.S. Treasury's guidance from April that required that a plan be submitted and contain responses to certain topics. This plan was used to inform the department’s submission to the U.S. Treasury via their application portal on July 30, 2021. See DRAFT Homeowner Assistance Fund Plan.
For the most updated information on program implementation, visit homeownerassistance.maryland.gov.