The 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.
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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