New Billion Dollar Emergency Loan Program Hopes to Stave Off Foreclosures



The U.S. Department of Housing and Urban Development (HUD) in conjunction with NeighborWorks America launched a new 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 due to Involuntary unemployment, underemployment, economic conditions or medical condition.

Congress provided $1 billion dollars to HUD, as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, to implement the program.  Qualified homeowners could receive interest-free loans; payment of a portion of a monthly mortgage for up to two years, or up to $50,000, whichever comes first; payment of a portion of monthly mortgage, including missed mortgage payments or past due charges including principal, interest, taxes and insurance.   The program is expected to aid up to 30,000 distressed borrowers, with an average loan of approximately $35,000.

The help to home owners will be offered only 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.

2 Comments For This Post

  1. Cynthia Raby Says:

    I am a home owner who has been struggling for over 4 yrs. to keep a home my husband and I built. His death put me in a situation I never expected. I have experienced extreme hardship finiancially after his death which resulted in loss of our family business,and repeated attemts to gain employment only to find there were no jobs to have, due to the economy.I have worked hard all of my life to have a home and be a good citizen…only to face foreclosure on my home that I have paid on for 30 yrs.! I refuse to give up! I need help. Please return to me soon an application to assist me in getting into this Federal program so that I can safe my home and continue living a productive life.I have no other place to go for help- I have tried everything…City Mortagage has mislead me, I feel, so that they can get my home.I have been promised by City Mortagage a modification loan for the last 4 yrs that has never been finalized on due to loss of my paperwork time after time after being sent to them!I am using my neighbor’s computer to contact you due to loss of my own computer so please contact me at her e-mail given above or at 5388 Weatwood Dr Granite Falls, NC 28630. Thank you for you time and consideration. Cynthia Raby

  2. Renters Florida Says:

    I really believe that a foreclosure can have a important effect on the client’s life. House foreclosures can have a 6 to few years negative affect on a debtor’s credit report. A borrower who’s applied for a home loan or almost any loans even, knows that the particular worse credit rating is definitely, the more tricky it is to have a decent personal loan. In addition, it can affect any borrower’s power to find a reasonable place to let or hire, if that becomes the alternative homes solution. Good blog post.

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