Foreclosure Prevention Assistance Program

The program provides assistance for residents faced with the possibility of losing their home due to foreclosure proceedings. The foreclosure prevention program provides a forgivable loan, up to $5,000, to eligible owner-occupied households to bring mortgage payments currents.

First priority will be given to applicants who previously received assistance under the city’s housing programs.

Eligibility requirements
 

• The homeowner must be the fee simple owner of the property
• The homeowner must be income eligible under SHIP guidelines
• The homeowner must be at least 30 days in arrears on their mortgage payment and provide written notification of arrearage from their mortgage lender
• Property must be located with the city limits of Daytona Beach
• Homeowner must shoe ability to make future mortgage payments
• Homeowners must complete a credit/budget counseling course offered by an approved non-profit and provide a certificate of completion to the city of Daytona Beach
• Extremely low, very low and low income homeowners are eligible for assistance.
• Moderate income homeowners may be eligible if it is determined that they have no other resources or have exhausted all other resources to have damage corrected

Eligible use of funds

Assistance will be provided for the following expenses:

• Delinquent mortgage payments (principles, interest, taxes and insurance)
• Budget counseling
• Attorney’s fees
• Delinquent homeowner’s insurance and property taxes

Terms and Conditions

Homeowners must enter into a legally binding forgivable loan mortgage lien agreement for a period of five (5) years

During the recapture period, the homeowner must comply with the following conditions:

• Occupy the property as their principal place of residency
• Maintain the property in accordance with routine maintenance
• Not relinquish their interest in the property in any manner
• Not further encumber the property
• Homeowner must complete a credit/budget counseling course
• Homeowner must show ability to make future mortgage payments consistently and timely

Acceptable evidence of an arrearage shall include, but is not limited to the following:

• Loss of employment or income
• Illness
• Excessive or sudden medical expenses
• Divorce or legal separation
• Unforeseen home repair bills not covered by homeowners’ insurance
• Natural disaster
• Other eligible reasons for arrearage as determined by the city on a case-by-case basis
   

Subsidy amount

The maximum subsidy is $5,000.