Troubled homeowners have 16 days to apply for US$50,000 in forgivable mortgage assistance from HUD's loan program
July 7, 2011
– With a limited time to apply, HomeOwnership.org announced a fast and easy way to apply for the U.S. Department of Housing and Urban Development’s (HUD) Emergency Homeowners’ Loan Program (EHLP). Rather than faxing or mailing in an application, troubled homeowners can easily apply for $50,000 in forgivable mortgage assistance by visiting the website – www.HomeOwnership.org – or by calling the Homeownership Preservation Foundation’s (HPF) Hotline at 888-995 HOPE™ to see if they qualify for this new Federal program. In order to ensure that program funds are made available in a fair and impartial manner, homeowners interested in applying must first complete a Pre-Applicant Screening Worksheet. The deadline for applications is July 22, 2011.
With the launch of the EHLP program, federal mortgage assistance is now available in all 50 states. Unemployed or underemployed homeowners can find out if they qualify for any of these programs by visiting HomeOwnership.org or calling the HOPE™ Hotline at 888-995 HOPE™.
“We want to provide struggling homeowners a simple way to find out if they qualify for these programs,” said Aaron Horvath, President of HomeOwnership.org. “We’re optimistic that EHLP will provide another option for distressed homeowners,” said Horvath.
Under EHLP, borrowers in Puerto Rico and the 27 states otherwise not funded by the U.S. Treasury's Innovation Fund for Hardest Hit Housing Markets program are eligible for assistance. The Dodd-Frank Wall Street Reform and Consumer Protection Act provided $1 billion to HUD to implement EHLP. States and jurisdictions that will be directly assisted under the EHLP include:
Alaska, Arkansas, Colorado, Hawaii, Iowa, Kansas, Louisiana, Maine, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Mexico, New York, North Dakota, Oklahoma, Puerto Rico, South Dakota, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming
The EHLP is designed to provide forgivable mortgage payment relief to eligible homeowners experiencing a drop in income of at least 15% directly resulting from involuntary unemployment or underemployment due to adverse economic conditions and/or a medical condition.
Approved borrowers will receive assistance under the EHLP to pay for the following expenses, and under the following terms and conditions of the loan program:
* Arrearages: EHLP loan assistance will help bring homeowners current by paying 100% of eligible arrearages.
* Monthly Mortgage Payments and Borrower Contributions: Under EHLP, the assisted homeowner's contribution to the monthly payment on their first mortgage will be set at 31% of their monthly income at the time of application, but in no instance will it be less than $150 per month. EHLP funds will be used to pay for the remaining balance.
* Duration of Assistance/Maximum Assistance Amount: Approved homeowners may receive EHLP assistance with monthly mortgage payments for a maximum duration of 24 months, or up to a maximum loan amount of $50,000 in total assistance, whichever occurs first.
* Loan Repayment Terms: No payment is due on the EHLP Note during the 5-year term so long as the assisted borrower remains current in their monthly mortgage payments, and meets other program requirements. If the homeowner meets these conditions, the principal balance due on their EHLP loan shall decline in equal portions of 20% annually, until the note is extinguished and the junior lien is terminated.
Troubled homeowners are encouraged to apply as soon as possible to beat the July 22 deadline. HomeOwnership.org assists clients nationwide needing foreclosure prevention assistance and other housing and financial counseling. Working in partnership with HPF, HomeOwnership.org has helped hundreds of thousands of distressed homeowners avoid foreclosure.
“Our goal is always to help homeowners find a workable solution to their housing needs,” said Horvath. “We’re here to help distressed homeowners navigate the lingering foreclosure crisis,” said Horvath.
HomeOwnership.org is a division of SPRINGBOARD® Nonprofit Consumer Credit Management, a 501(c)(3) nonprofit personal financial education and counseling organization founded in 1974. Springboard is a HUD-approved housing counseling agency and a member of the National Foundation for Credit Counseling, a national organization of nonprofit credit counseling agencies, and a member of the Association of Independent Credit Counseling Agencies. The agency offers personal financial education and assistance with credit counseling, housing counseling, debt and money management through educational programs and confidential counseling. Springboard is accredited by the Council on Accreditation, signifying the highest standards for agency governance, fiscal integrity, counselor certification and service delivery policies. The agency provides pre-bankruptcy counseling and debtor education as mandated by the bankruptcy reform law. The agency offers nationwide phone counseling services and has locations in California, Arizona, Nevada, New Mexico and Texas for in-person counseling sessions. Not all types of counseling are available in-person at all locations, please call for details. For more information on Springboard, call 800-449-9818 or visit their web site at www.homeownership.org.
About the Homeownership Preservation Foundation
The Homeownership Preservation Foundation (HPF) is an independent national nonprofit dedicated to helping distressed homeowners navigate financial challenges and avoid mortgage foreclosure. HPF guides consumers onto the path of sustainable homeownership and develops innovative solutions to preserve and expand homeownership.
Through its Homeowner’s HOPE™ Hotline, 888‐995‐HOPE™, HPF provides comprehensive financial education and confidential foreclosure prevention counseling for FREE, 24 hours a day, 7 days a week, 365 days a year, in over 170 languages. Since 2007, HPF has served more than four million distressed homeowners, an average of 5,500 each weekday, who depend upon HPF as a trusted, neutral source of information and assistance. For more information about the Homeownership Preservation Foundation or the Homeowner’s HOPE™ Hotline, please visit www.995hope.org.
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