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EHLP to Extend Mortgage Help to Consumers

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EHLP to Extend Mortgage Help to ConsumersThe U.S. Department of Housing and Urban Development recently launched a new foreclosure assistance initiative known as the Emergency Homeowners’ Loan Program, which will give more than $1 billion to consumers nationwide who fell behind on their mortgage payments due to job loss or unforeseen medical bills. Approved homeowners will receive a maximum of $50,000 in interest-free loans over two years to help them catch up on their home loan payments.

[Related: Qualified for a Mortgage, Rejected for a Credit Card. Huh?]

The HUD program was supposed to begin last year, but there were significant delays in setting it up, and now the government agency must distribute its $1 billion in aid before the end of the government’s fiscal year on September 30. In all, consumers in 27 states will be able to receive aid, with Texas, New York and Pennsylvania getting the most – more than $100 million each.

Many government programs have been created in recent years to help consumers avoid the problems related to foreclosure. However, these initiatives have often been criticized as being too difficult for even the most troubled borrowers to qualify for.

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  • Robyn

    Do you have to be behind on your mortgage payments to qualify for emergency homeowners loan program? My son’s family is on the brink of disaster but not quite there. They are “underwater” now on their home to the tune of $65,000 and they have had escalating medical expenses. They have been sustaining their bills with student loan money. His newly graduated wife has struggled to find employment and has only just recently found parttime work. However… They anticipate the income she can bring in will not be enough to cover continued medical expenses as well as student loan payments that will come due in the next month. They have maxed credit cards and are very anxious about even paying bills now. Do you have any advise?

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