When an applicant receives their Road Home award can the lender force them to use the funds to pay off their remaining mortgage?
A homeowner’s mortgage loan documents and the lender may impose conditions with respect to the use of the proceeds. Homeowners are encouraged to consult with their lender. However, the decision whether to consult with a mortgage lender is entirely up to the homeowner. The Road Home program cannot advise the homeowner as to what actions a particular mortgage lender may or may not take with respect to their grant proceeds, or what a homeowner’s rights and obligations to the mortgage lender are under the mortgage.
Related Questions
- When an applicant receives their Road Home award can the lender force them to use the funds to pay off their remaining mortgage?
- The mortgage lender foreclosed on the property. Is the applicant or co-applicant still eligible for a Road Home grant?
- Can HOME funds be used to pay predevelopment expenses?
