Emergency loans
available for families
facing foreclosure
Homeowners who are 90 days delinquent on their mortgage and are facing foreclosure have only one more week to apply for HUD/NeighborWorks’ Emergency Homeowners’ Loan Program (EHLP). NeighborWorks will accept applications through September 15, 2011.
EHLP will assist homeowners who have experienced a reduction in income and are at risk of foreclosure due to involuntary unemployment or underemployment due to economic conditions or a medical condition.
Eligible homeowners can qualify for a 0% interest, forgivable loan which will pay past mortgage payments, taxes and insurance, and then pay a portion of future monthly mortgage payments for up to two years, or up to $50,000, whichever comes first. This emergency bridge loan will gradually be forgiven provided the homeowner remains in his or her property for five years.
Homeowners must contact a participating counseling agency for more information in order to determine their eligibility for the program and to apply for mortgage assistance. Only participating counseling agencies can accept applications from homeowners.
Since EHLP funds are provided to qualified homeowners on a first-come, first-served basis, it is critical homeowners provide all required documents in a timely manner or risk losing the opportunity to apply for assistance under the program. There is no cost to apply for this program.
The Dodd-Frank Wall Street Reform and Consumer Protection Act authorizes HUD to administer a $1 billion Emergency Homeowners Loan Program nationwide.
Information can be found at www.FindEHLP.org or by calling, toll free, (855) FIND-EHLP (346-3345).
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