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RADA

The Mortgage Payment Program


MPP Overview
Is MPP For Me?
How Do I Apply for MPP?
What Happens if I am Approved?

Program Overview


The Mortgage Payment Program (MPP) is a foreclosure prevention program that provides a zero-interest, non-recourse, deferred-payment, subordinate loan that will be forgiven after 10 years. MPP loan funds can be used 1) to bring delinquent past-due mortgage(s) current and/or 2) to pay monthly mortgage payments and other mortgage-related expenses that are not escrowed (i.e. property taxes, homeowner insurance, mortgage insurance, and homeowner’s association dues) while the homeowner seeks employment or trains for a new job.

Homeowners will be eligible to receive up to $36,000 (not to exceed 36 months of assistance). The program is targeted to those with employment-related issues that are able to recover from a financial hardship. MPP loan recipients must be either 1) willing to search for employment, 2) willing to attend school to secure employment, or 3) must have recovered from a temporary program-eligible financial hardship and need assistance bringing their mortgage payments current (reinstatement).
​
What is a Program Eligible Financial Hardship?
        - A program-eligible financial hardship is an event or condition that has caused a reduction in income that is likely to improve in the foreseeable future (i.e. illness, death of a co-borrower, divorce or separation).

The homeowner must meet eligibility and program underwriting guidelines and must also complete a hardship affidavit. As each situation is different, please talk to a RADA Housing Counselor to determine if you are eligible to apply for MPP assistance.

Note: Homeowners who are within 15 calendar days of a foreclosure sale cannot submit an application for MPP assistance. If the Clerk of Court postpones the sale date to meet the 15-day requirement, the MPP application may be submitted.
​

​Types of MPP Assistance


There are three types of assistance available under the Mortgage Payment Program:
​
  • Job Search (Short-term Assistance)
Unemployed and under-employed homeowners who need help with their mortgage payment(s) and/or mortgage-related expenses while looking for work may be eligible for Job Search assistance. The current mortgage must not be more than 6 months delinquent when the homeowner applies. However, the mortgage does not need to be delinquent at all for the homeowner to be eligible.

Note: If your mortgage is more than 6 months delinquent, you may still be able to apply for Job Search assistance. See the Homeowner Contribution Options below.

MPP Job Search assistance is available up to $36,000 for a minimum of 6 months and a maximum of 18 months. You must need at least six months of assistance to be eligible for Job Search assistance.
​
  • Job Training (Long-term Assistance)
Unemployed and under-employed homeowners who need help with their mortgage payments and/or mortgage-related expenses while completing job training, a certification program, or some other education program leading to a search for a better paying job may be eligible for MPP Job Training assistance.

The homeowner must be receiving (or have received) unemployment benefits. If the homeowner did not qualify for unemployment benefits because he/she worked for an employer who did not contribute to the unemployment insurance fund, the homeowner must obtain a letter of verification from that employer as part of the MPP application. There may be exceptions for self-employed homeowners.

MPP Job Training assistance is available up to $36,000 for a maximum of 36 months.

Note: If you need more financial assistance than is offered by the program or require more than 36 months to complete your training, you may still be able to apply for assistance. See theHomeowner Contribution Options below.
​
  • Mortgage Reinstatement (One-time Assistance)
Mortgage reinstatement is a one-time loan (up to $36,000) made to bring a delinquent mortgage and/or mortgage-related expenses current for a homeowner who is re-employed in a full-time permanent position or who has recovered from a temporary program-eligible financial hardship and now has the ability to resume the regular monthly mortgage payments based on his/her new income.

Note: If your mortgage delinquency exceeds the $36,000, you may still be able to apply for one-time Reinstatement. See the Homeowner Contribution Options below.
​

​Homeowner Contribution Options


​There may be homeowners who would otherwise qualify for assistance except for amount limitations on program funds. If such a homeowner has the ability to close this gap with alternate funds, he will be allowed to do so as outlined below:

  • Job Search Assistance Homeowner Contribution Option
In order to qualify for Job Search Assistance, "a homeowner must not be more than 6 months delinquent” However, if you are otherwise eligible for job search assistance but are more than 6 months delinquent, you may be allowed to pay the difference to bring the outstanding delinquency to within the 6 month limit. These gap funds would be payable in certified funds at closing, and the source of the funds would have to be documented.

For example, if a borrower were 7 months delinquent and had the means to pay one month of mortgage expenses (to reduce the delinquency to 6 months) he would be permitted to do so by providing certified funds at closing. The source of the funds would have to be discussed in the Hardship Affidavit and documented by the RADA Housing Counselor prior to MPP loan approval.

  • Job Training Assistance Homeowner Contribution Options
Homeowners may pay the difference between the available MPP funds they are eligible for and what they actually need to complete their education or retraining program (not to exceed program maximums).

The source of the gap funds would have to be discussed in the Hardship Affidavit and documented by the RADA Housing Counselor prior to loan approval.

If you are delinquent on your existing mortgage payments, you must pay the gap amount in certified funds at closing.

If you are current on your existing mortgage payments, you must use verified funds to pay your mortgage expenses directly to your mortgage servicer for the months of shortfall, or gap, until the MPP assistance begins.

  • Mortgage Reinstatement Homeowner Contribution Options
If the amount you need to bring your mortgage current exceeds the $36,000 maximum amount available under MPP, you may pay the difference between the available MPP funds that you are eligible for and what is needed to reinstate your mortgage. You must provide certified funds at closing to cover the gap.

The source of the gap funds would have to be discussed in the Hardship Affidavit and documented by the RADA Housing Counselor prior to loan approval.

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Raleigh, North Carolina 27609
tel: (919) 807-8400
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  • Home
  • About RADA
    • Board of Directors
    • Our Sponsors & Partners
  • News
  • Foreclosure Prevention
    • The Foreclosure Process >
      • Foreclosure Alternatives
    • The Mortgage Payment Program >
      • Mortgage Payment Program Overview
      • Second Mortgage Refinance Program
      • Help for Veterans
      • Help for Furloughed Workers
  • Reverse Mortgage Counseling
  • Homebuyer Services
    • Pre-Purchase Counseling
    • 8-Hour Online Homebuyer Education
    • Homebuyer's Education Workshop
  • Contact Us
    • Download Forms