The District of Columbia Housing Finance Agency (DCHFA) announced on Wednesday that it has relaunched its Reverse Mortgage Insurance & Tax Payment Program (ReMIT), which originally began in 2019 and expanded in 2020.
Qualifying senior homeowners who live in Washington, D.C., can receive financial assistance to cover delinquent property taxes, homeowners insurance or HOA fees that put the homeowner at risk of foreclosure.
Taxes, insurance and HOA fees (if applicable) are critical fees that reverse mortgage borrowers must keep up with for their loans to be in good standing. ReMIT was originally launched in 2019 and extended to the end of 2021, but it has not been active since then. Reviving the program now will help more seniors remain in their homes, according to Christopher E. Donald, DCHFA executive director and CEO.
“Many senior citizens are at risk of foreclosure as a result of overdue property taxes or insurance bills. At DCHFA, we know that remaining a homeowner is just as important as purchasing a home, hence the relaunching of ReMIT,” Donald said in a statement.
“I have no doubt that the return of ReMIT will continue to be a supportive foreclosure prevention tool for D.C. residents. It’s imperative to take action and provide financial assistance to retain and preserve homeownership in the District, especially for our long-term residents as many seniors are.”
Under the guidelines of the revived program, eligible beneficiaries can receive up to $40,000 in assistance to pay delinquent property taxes, homeowners insurance, or HOA/condo fees. The assistance will come in the form of a zero-interest deferred loan.
DCHFA will also be collaborating more directly with reverse mortgage industry participants as the program expands, the agency explained.
“Reverse mortgage lenders and housing counseling services will also work more closely with ReMIT participants to set up the proper escrow and other payment mechanisms to ensure that seniors are not delinquent on tax and insurance payments going forward,” the announcement explained.
In order to qualify, an eligible beneficiary must be a D.C. resident with a home secured by a reverse mortgage as either the named borrower or the spouse of a deceased borrower; have an annual income of no more than $77,450; be at risk of foreclosure due to delinquent taxes or insurance; and must demonstrate an ability to maintain future tax and insurance payments.
The 2019-2021 tenure for the original ReMIT program distributed “nearly $200,000 in assistance to save [beneficiaries’] homes from foreclosure, preserving their homeownership status,” DCHFA said.