WMBFNews.com | Myrtle Beach/Florence, SC | News, Weather, SportsSC HELP funding not being put to use

SC HELP funding not being put to use

FLORENCE, SC(WMBF) State officials are encouraging people, facing foreclosure, to get help. $300 million dollars of federal funding is set aside to help responsible but struggling homeowners in the state. But state officials say some people in the Pee Dee aren't taking advantage of the program.

The director of the state foreclosure prevention program, or South Carolina HELP says South Carolina was number two on the list of 18 states that applied for the federal funding. He says that's because of the state's high foreclosure and unemployment rates.

The South Carolina Home ownership and Employment Lending Program, or HELP is in it's second year.

State officials say they haven't seen many people rushing to get some assistance with the program and they're not surprised.

"It's understandable frustration from customers who have tried other avenues and run into brick walls and I think it's part of it and the other part I think people just don't know about it," said Communications Director, Clayton Ingram.

Darlington and Florence Counties combined have had more than 500 homes foreclosed in the last year, but less than 30 households in the area received funding from the South Carolina HELP Program.

State directors could not release how many people from those areas actually applied for the assistance, but say 18,000 homeowners across the state created an account and started the application process, and only about 5,000 of those went through the entire process.

State representatives and community leaders are even getting involved in the Pee Dee, encouraging homeowners to apply for the program.

"It doesn't cost a thing, there's no fee. The worst thing that can happen is you spending a little time on it and the answer is no," said Ingram.

Matt Rivers, Director of SC HELP,  urges homeowner who are or may be falling behind in mortgage payments to apply. "Our main goal is to make certain no potential beneficiary goes unserved.  We don't want to see any one exclude themselves before hearing their circumstances."

Assistance available from SC HELP  includes:

                Monthly Payment Assistance-assisting homeowners with monthly payments for a defined period of time while they seek employment and a return to self sustainability.

                Direct Loan Assistance funds can be used to pay arrearages in order to bring the loan current.

                Transition Assistance-in cases where the mortgage cannot be salvaged, funds may be provided to incentivize short sales, deeds-in-lieu of foreclosure and to help transition families from home ownership to rental housing.

Homeowners applying for Monthly Payment Assistance or Direct Loan Assistance must meet certain threshold requirements in order to apply for help:

1. Borrower or co-borrower must be able to document that the delinquency was a result of a hardship event beyond his/her control (examples include: unemployment, underemployment, death of a spouse, catastrophic health expenses, etc.)

3. Property securing the mortgage must be owner-occupied as a full-time residence

4. Borrower must provide a financial hardship affidavit

6. Loan servicer/investor must be willing to accept payments and provide required data and reporting

A complete list of required documentation can be found at http://www.scmortgagehelp.com/

Assistance from SC HELP will be provided in the form of a nonrecourse zero-percent interest, non-amortizing, forgivable loan secured by a subordinate lien on the subject property. The loan will be forgiven over a five-year period at a rate of 20% per year. If property is sold or refinanced prior to the loan termination date, funds will be recovered should sufficient equity be available from the transaction. The Property Disposition Assistance Program will provide a one time, lump sum grant to the recipient.

"This is short-term help, this is a bridge across a difficult time and it doesn't change the permanent terms of the mortgage," said Ingram.

Additional criteria and documentation requirements must be met for final eligibility determination. Homeowners wishing to make an application should apply online at http://www.scmortgagehelp.com/. SC HELP officials emphasize that using the online application is the fastest and most efficient way to begin the process. Homeowners without Internet access may call toll-free to 855-HELP-4-SC (855 435-7472) to begin the process.

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