The U.S. Department of Housing and Urban Development’s Emergency Homeowners Loan Program will stop accepting applications on July 22, according to a report from Springfield, Missouri, television station KOLR. This means that consumers interested in receiving mortgage payment assistance from the federal government will need to start filling out paperwork now to beat the deadline.
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The program will extend qualifying consumers forgivable, interest-free loans of up to $50,000 for households with a combined gross income for all mortgage co-signers of $75,000 or less, the report said. However, demand for the program is so great that many states will be granting the loans via a lottery.
“Right now, there are so many people that are upside down,” Mike Cherry, president of Consumer Credit Counseling Service in Springfield, told the news station. “They owe more money they the house is worth. There are a number of foreclosures across the country. The market is flooded with foreclosures, so this is a two prong approach: help these people keep their homes and the other is to lower the number of foreclosures that are going on out there help people that are upside down.”
Often, government mortgage assistance programs are difficult to qualify for, even for those who have severe money problems. For this reason, many consumers also attempt to refinance their existing home loans to lower their monthly payments.
[Resource: The Ultimate Guide to Underwater Mortgages]
Image: karol m, via Flickr