July 30, 2021

MP Now News

Mortgage News

Financial help for Vermonters who missed mortgage payment due to COVID

The federally funded program to assist Vermonters who have defaulted on mortgage or property tax payments due to the COVID-19 pandemic resumed Monday this week to provide grants for payments up to 12 months overdue.

The Mortgage assistance program The company first operated July through December 2020, granting 636 Vermont households an average of $ 6,000 each. With average monthly mortgage payments of $ 1,200, most of these households owed payments of three months or more, and most were lenient.

The program is administered by Vermont Housing Finance Agency, but is open to all eligible homeowners, regardless of where they got their loans from.

Missed mortgage payments in Vermont have doubled over the course of the pandemic.

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Forbearance helps avoid immediate foreclosure for homeowners, but it does nothing to clear the amount of money they owe. Sometimes the repayment terms make the house unaffordable. The mortgage assistance program helps solve this problem by lowering a homeowner’s credit.

“We are relieved to resume these grants for the many Vermont homeowners who continue to face economic hardship amid this pandemic,” said Maura Collins, managing director of VHFA, in a press release. “We have heard of homeowners worried about paying back their forbearance balances, and we’re glad this program can provide them a path toward housing and financial stability.”