Update: Unfortunately, requests for TXHAF assistance have exceeded available funds. So, the program discussed in this article is no longer accepting new applications. However, even if a foreclosure has started, you might have time to work out an alternative with your loan servicer. Call your servicer to learn about available options. If you have questions about the foreclosure process in Texas or want to learn about potential defenses, consider also talking to a foreclosure lawyer.
In early 2021, President Joe Biden signed the American Rescue Plan Act into law. This law created a Homeowner Assistance Fund, a federal program, to give $10 billion to the states to help households that are behind on their mortgages and other housing expenses due to COVID-19.
Eligible homeowners in Texas who've experienced a financial hardship because of COVID-19 can get a portion of the approximately $842 million allocated to the state—possibly up to $40,000 per household, depending on the circumstances—by applying to the Texas Homeowners Assistance Fund (TXHAF) program. This program uses federal money to help homeowners get caught up on overdue mortgage payments and other home-related costs.
The TXHAF program offers the following kinds of assistance to eligible homeowners.
To qualify for relief from the TXHAF program, you must have suffered a financial hardship (a material reduction in income or an increase in living expenses) after January 21, 2020, because of COVID-19.
In addition, you have to meet some other criteria.
Go to the TXHAF website's application portal to apply for help from this program. You'll have to create an account and provide some documentation with your application, like mortgage statements or statements for your other housing-related costs, proof of income (such as pay stubs and tax returns), proof of occupancy, and a government-issued ID (like a driver's license).
After you apply, you can log in to your account to check your application's status. If your application is denied, you can appeal the decision within 30 days.
Assistance is structured as a grant that you don't have to repay. Payments go directly to the loan servicer or other eligible third party, not to homeowners.
If you get an unsolicited offer by phone, in the U.S. mail, through email, or by text message offering mortgage relief or foreclosure rescue services, be wary. Scammers sometimes target homeowners who've been affected by COVID-19.
The TXHAF program is free. If anyone asks you to pay a fee to get housing counseling or to receive foreclosure prevention services from this program, it's a scam.
If you have questions or need help with your application, call 833-651-3874 and review the TXHAF program FAQs. Also, consider contacting a HUD-approved housing counselor who will assist you at no cost. To find a counselor near you, go to HUD's website or call 800-569-4287.
You can also go to the TXHAF program dashboard to get information about how many households have received assistance and how much money has been distributed.