There are two types of mortgage
assistance available under the HomeSafe Georgia Program*.
Payment Assistance- Up to 18 months of first and second mortgage payments are
paid directly to your lender(s). The equivalent of up to 6 monthly payments
can be paid in an upfront reinstatement, with remaining assistance on a
monthly basis going forward. If
payment assistance is not needed for the full 18 months, the remaining loan proceeds
may be used to pay any additional mortgage delinquencies in a backend
reinstatement. Any remaining
proceeds will be returned to the Program to provide assistance to other
During the hardship: Up to 6 months of missed first and second mortgage payments,
forbearance differentials, plus lender fees are paid in a one-time payment to
your lender. The total amount
cannot exceed the equivalent of 18 regular payments.
“Up to” is the reserved
amount, the maximum amount of the loan, and does not guarantee the full
amount will be paid or that your loan will be current when you complete the
payment” is the regular scheduled payment amount including any mortgage
related escrowed fees. Assistance
is limited to one time per applicant or household for the duration of the
HomeSafe Georgia must
reserve the funds per borrower; therefore, the maximum loan amount will be
listed in the Promissory Note, but the HomeSafe Georgia lien will be balanced
to the amount of monetary assistance used.
To figure your maximum
amount of loan, choose the assistance that fits your needs:
monthly payment $________________ x 18 = $ _______________ Maximum loan amount
assisted: 18 months - delinquency ___________ (up to 6
payments) = up to ___________ months assistance
monthly payment $_____________x missed payments (up to 6) $_____________ + $_____________ forbearance differential + $_____________estimated lender fees = $_______________ Approximate maximum
*Applicants and property
must meet all eligibility requirements.
Annual Percentage Rate
The HomeSafe Georgia loans
are 0% interest, 0% APR.
No fees are charged to the
applicant for the HomeSafe Georgia loan.
Fees associated with the loan are charged to the HomeSafe Georgia
Borrowing and Repayment Terms
The HomeSafe Georgia loan is
forgiven after five years from 30 days after the last date of assistance,
with a forgiveness rate of 20% each year. This means that if the applicant
remains in the home for five years and 30 days after assistance is completed,
the lien balance is $0.
For example, if the last
assistance payment paid on behalf of the Borrower was made on January 1,
2012, then the first day of the Forgiveness Period is February 1, 2012, and
the Principal Amount would be reduced as follows:
Date of Reduction
Dates for Above
Borrower Example. (Your dates would be different.)
Amount of Total
Principal (Assistance Amount Used) Reduction
(Assistance Amount Used) Remaining Due as of Date of Reduction
Prior to one year
End of year 1
February 1, 2013
End of year 2
February 1, 2014
End of year 3
February 1, 2015
End of year 4
February 1, 2016
End of year 5
February 1, 2017
The chart is important to
understand in case there is a “Payment
Event” that would trigger the principal amount to be due prior to
the end of the forgiveness period. Payment events are listed as: borrower
selling or no longer residing in the property; transfer of property; borrower
files a bankruptcy petition; borrower is terminated from the program by
HomeSafe Georgia; or HomeSafe Georgia declares a default under the Note or
For example, if the Borrower
above received $20,000 in assistance and sold his/her home on January 15,
2015, the lien balance of $12,000 (60%), would be due at closing. For sales, contact HomeSafe Georgia
for payoff amount.
For a refinance, HomeSafe
Georgia will re-subordinate the lien if requested and if procedures are followed. A refinance will immediately terminate
the assistance for any borrowers still under HomeSafe Georgia participation.
The borrower is not required
to make payments on the HomeSafe Georgia loan, but may choose to do so
without any penalty. A Payment
Event could trigger the balance to be due.
The borrower may be required
to make partial mortgage payments.
These payments are combined with the assistance payments to the lender
and will reduce the amount of provided assistance and lien balance, but are
not payments directly for the HomeSafe Georgia loan.
A Security Deed is issued and a lien remains
on the property until forgiven or satisfied. This is a debt.
Payment Events, including failure to maintain
eligibility, can trigger the lien balance to be due on demand.
You will not be able to claim mortgage
interest on the amount of assistance provided to your lender/servicer on your
behalf by HomeSafe Georgia.
Contact your tax consultant for more information.
Understanding the HomeSafe Georgia Loan
Not everyone will qualify. Please refer to eligibility
If approved, you are under no obligation to
accept this loan.
HomeSafe Georgia assistance can conflict with
some lender programs. Please discuss
options with your lender if you are considering this assistance and lender
Ask questions if you do not understand any
part of this program.