Though there is uncertainty surrounding the fourth stimulus check, there is an alternative source from which homeowners can benefit. The Homeowners Assistance Fund has set aside $10B to help homeowners save their homes.
The Homeowners Assistance Fund is under the $1.9T American Rescue Fund signed by President Biden in March this year. The fund is for assisting with payments of the mortgage. This stimulus check will prevent foreclosure, delinquency, and delayed utility payment.
Homeowners who have been most affected by the economic downturn will be the first to benefit from this scheme. To this end, the Treasury Dept has said it has used income indicators at both local and federal levels so that the money goes to the people who need it the most.
A minimum amount of $50M has gone out to every state, plus the Districts of Columbia and Puerto Rico. Another $498M has been set aside for tribal housing bodies. The American territories of Samoa, Guam, Northern Mariana Islands, plus the Virgin Islands will get $30 million.
Criteria For The Homeowners Stimulus Check
Householders who have endured financial difficulties after January this year will receive this additional stimulus check. Plus, they should have income below or equal to 150% of the median income of the area.
It is also necessary to provide proof of their financial adversity. It might be the reduction or loss in income or the loss of a job. Additional and emergency expenses like medical expenses would also make you eligible for this stimulus check.
Homeowners with mortgage balances below $548,250 in 2021 will qualify for this stimulus check.
Extending Forbearance
President Biden has already extended forbearance through a directive to the federal regulators. The extension is for 6 months. This directive also extends extra foreclosure relief measures beyond the December 31 cutoff date. A staggering 3M Americans have missed out on their mortgage payments. Another 1.7M will be out of the forbearance period by September. These people will benefit from the Homeowners Assistance Fund. But this fund is not automatic like the stimulus check. You have to contact the housing agency in your state through their website to apply for the fund.
