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.