Emergency Homeowners' Loan Program
Deadline for this program is July 22, 2011. Homeowners should apply now in order to find out if they qualify for this new mortgage assistance program. Call 888-995-HOPE to apply now.
The U.S. Department of Housing and Urban Development (HUD) in conjunction with NeighborWorks® America announced the launch of the Emergency Homeowners' Loan Program (EHLP) today, to help homeowners who are at risk of foreclosure in 27 states across the country and Puerto Rico. The program will assist homeowners who have experienced a reduction in income and are at risk of foreclosure due to involuntary unemployment, underemployment, due to economic conditions or a medical condition.
Under EHLP program guidelines eligible homeowners can qualify for an interest free loan which pays a portion of their monthly mortgage for up to two years, or up to $50,000, whichever comes first.
Financially challenged homeowners who meet the following may be eligible for financial assistance via EHLP:
- Employment Status: Must be involuntarily unemployed (or underemployed) due to adverse economic conditions and/or a medical emergency
- Mortgaged Property: Domicile must be a single-family residence and the homeowner's primary residence
- Income Restrictions: Homeowner must be experiencing an income reduction of 15 percent or more due to a change in employment status, with a total household income no greater than $75,000 or 120 percent of the Area Median Income (AMI) for a household size of four people
- Mortgage Delinquency Status: Homeowner must be able to demonstrate that he/she is three or more months delinquent on mortgage payments
- Foreclosure Prospects: Homeowner must be facing significant likelihood of foreclosure, as evidenced by receipt of a foreclosure notice from their lender
- Ability to Restart Payments: Homeowner must demonstrate a realistic likelihood of restarting mortgage obligations, as well as other housing expenses and debt obligations, within two years
The EHLP program will pay a portion of an approved applicant's monthly mortgage including missed mortgage payments or past due charges including principal, interest, taxes, insurances, and attorney fees. EHLP is expected to aid up to 30,000 distressed borrowers, with an average loan of approximately $35,000.
The EHLP program will be offered in the following states: Alaska, Arkansas, Colorado, Hawaii, Iowa, Kansas, Louisiana, Maine, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Mexico, New York, North Dakota, Oklahoma, South Dakota, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming and Puerto Rico. Five states operating substantially similar programs are administering EHLP directly: Connecticut, Delaware, Idaho, Maryland, and Pennsylvania. With this program's launch, mortgage assistance is now available for unemployed and underemployed homeowners in every state.
To check your eligibility in this or other assisance programs, contact a HUD-approved housing councelor at 888-995-HOPE.