Homeowners facing foreclosure can now tap into a $1 billion
program of emergency loans to help tide them over a temporary
financial crisis, the Department of Housing and Urban Development
(HUD) has announced.
Beginning today, homeowners in 27 states can file preliminary
applications for the Emergency Homeowner's Loan Program (EHLP).
Eligible homeowners can obtain interest-free loans of up to $50,000
to help cover mortgage expenses for up to two years.
The program is available to homeowners who have seen their
incomes fall and who could lose their homes to foreclosure due to
circumstances beyond their control, including involuntary
unemployment, underemployment, economic conditions or an
The program is a counterpart to the $7.6 billion Hardest Hit
Fund and is available only to homeowners in states not covered by
that program. The Hardest Hit Fund provides foreclosure avoidance
assistance to homeowners in states that have been most seriously
affected by the declining housing market and economic downturn.
The new initiative is expected to provide assistance to up to
30,000 homeowners, with loans averaging $35,000 each. Loans may be
used to pay a portion of monthly mortgage bills, including missed
mortgage payments or past due charges including principal,
interest, taxes, insurances, and attorney fees.
Homeowners seeking assistance must complete a pre-application
screening workshop by July 22 in order to be considered for the
program. As demand is expected to exceed the amount of funding
available, qualifying homeowners will be chosen at random to
complete the application process.
More information on the program, including links to the
pre-application worksheet, are available on the NeighborWorks web
NeighborWorks is partnering with HUD to carry out the program.
States served by the program are 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. EHLP
is also offered in Puerto Rico.
In addition, the five states of Connecticut, Delaware, Idaho,
Maryland and Pennsylvania have established their own
anti-foreclosure programs that are similar to EHLP and are
receiving funds through the EHLP program. Residents of those states
may apply for assistance through their state housing agency or