Categorized | Finance and Mortgage

Despite Its Success, Pennsylvania’s Mortgage-aid Program Gets Cut

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Although Pennsylvania’s Homeowners’ Emergency Mortgage Assistance Program, known as HEMAP, has had incredible success over the last three decades, state lawmakers have decided to suspend the program until further notice due to insufficient funding. The program had been the victim of a severe eighty percent budget cut, and due to a lack of funding; it has now been closed down.

While federal programs have failed to bring back the depressed housing market across the United States, this state program has played a very significant role in helping more than forty thousand families avoid foreclosure. It was designed to help those families that may be struggling to pay their monthly mortgage due to a temporary financial hardship such as unemployment. With unemployment rates at incredibly high levels over the past few years, it has proven unbelievably beneficial to many families.

However, Pennsylvania lawmakers were obviously not impressed by its success, and decided it was not worth keeping afloat. Unfortunately, the program, which has had proven success, is much cheaper than any of the federal alternatives. In fact, it has been found to be as much as eighty eight percent cheaper. The program is widely credited as being one of the reasons why Pennsylvania has been able to avert the troubles faced by many other states with regard to the housing market.

While the elimination of HEMAP certainly is not good news for those living in Pennsylvania, there are, perhaps, some positives that have come out of the situation. The federal government is using HEMAP as a model to how it plans to modify how it is approaching the depressed housing market.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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