April 4, 2011 (Jeff Alan)
Five more states have been approved to receive funds from the Department of Housing and Urban Development’s (HUD) Emergency Home Loan Program (EHLP). The bridge loan program is designed to help unemployed families pay their mortgages by providing up to $50,000 in assistance to help borrowers pay their mortgage principal, interest, insurance, taxes and hazard insurance for up to 24 months.
Last year HUD provided $1 billion in assistance to 32 states and Puerto Rico in emergency assistance to homeowners at risk of foreclosure due to loss of income brought on by layoff, underemployment, or medical assistance.
The five states and the amounts that they were awarded included Connecticut ($33 million), Delaware ($6 million), Idaho ($13 million), Maryland ($40 million), and Pennsylvania ($105 million).
“The Emergency Homeowner Loan Program will provide limited and targeted assistance to help working families get back on their feet and keep their home while they look for work,” said HUD Secretary Shaun Donovan.
Under the program, eligible borrowers must:
1. Be at least three months delinquent in their payments and have a reasonable likelihood of being able to resume repayment of their mortgage payments and related housing expenses within two years;
2. Have a mortgage property that is the principal residence of the borrower, and eligible borrowers may not own a second home; and
3. Demonstrate a good payment record prior to the event that produced the reduction of income.
According to HUD, nonprofit housing counselors who are part of the National Foreclosure Mitigation Counseling Program administered by NeighborWorks® America will coordinate intake counseling, document preparation and outreach functions.
States are expected to be able to start taking applications in early April.
Tags: HUD, Emergency Home Loan Program, mortgage assistance, borrowers, unemployed families, loss of income, layoff, underemployed