Lt. Governor Carney Announces New Funding for Delaware Emergency Mortgage Assistance Program (DEMAP)

Lt. Governor John Carney today announced that he has secured $675,000 in funding for immediate use by the Delaware Emergency Mortgage Assistance Program (DEMAP). The funding comes from the Delaware State Housing Authority's (DSHA) Second Mortgage Assistance Loan program ($500,000), the City of Wilmington ($100,000) and New Castle County ($75,000).

Created in 2007 largely through the work of Rep. Helene Keeley and Deputy Banking Commissioner Gerry Kelly, the DEMAP faced higher demand than anticipated. DSHA allocated all of the program's state funding in the first six months of this fiscal year. The Lt. Governor's Foreclosure Task Force made finding additional funding for DEMAP its first recommendation in an interim report it released last December.

"The Task Force made it very clear that this was one of its top priorities," the Lt. Governor said. "I think it is a very appropriate and urgent priority. While we continue to look for funding for education and outreach programs as well as to increase the capacity of our housing counseling agencies, we must ensure that they are able to help families who come to them for assistance. The DEMAP is one of the tools counselors use to help save homes."

"We are grateful to Mayor Baker and County Executive Coons for their generosity and commitment to Delaware residents facing the loss of their homes. Without this additional funding, DEMAP would have become dormant."

The DEMAP was created to help homeowners who are in default due to a hardship beyond their control, including loss of employment or illness. Successful applicants must earn less than 115% of median income and show an ability to repay a maximum loan of $15,000. This is a one time only bridge loan, with a minimum monthly payment of $40. They must also be able to meet the payments on their primary mortgage. The DEMAP loan can be used for past due or on-going mortgage payments, insurance, taxes and various fees, including legal fees.

"This is the only program available in our state for families facing foreclosure," said Delaware State Housing Authority Director Saundra Johnson. "This program helps Delawareans who face losing their home for reasons out of their control, like a job loss or a health situation. By providing them with what is a relatively small loan, we are able to get them back on track and preserve their home and, in some cases, their neighborhood."

For more information or to learn how to apply for a DEMAP loan, contact a participating housing counseling agency (a list can be found at www.destatehousing.com) or Jaynice Porter-Brathwaite at 1-888-363-8808 or Jaynice@destatehousing.com.

Additional information about foreclosure can be found at the State's Foreclosure Information page - http://portal.delaware.gov/foreclosureinfo.

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