Exciting News!
A provision in the Dodd-Frank Wall Street Reform and Consumer Protection Act provided $1 Billion to the Department of Housing and Urban Development (HUD) to implement the Emergency Homeowners Loan Program (EHLP).
A provision in the Dodd-Frank Wall Street Reform and Consumer Protection Act provided $1 Billion to the Department of Housing and Urban Development (HUD) to implement the Emergency Homeowners Loan Program (EHLP).
The program will offer eligible homeowners loans in the amount of up to $50,000 for the following uses:
- payments on arrearages of delinquent property taxes and insurance premiums.
- up to 24 months of monthly mortgage payments
The terms:
- 0% interest
- will be set up as a second mortgage lien
- 5 year term with 20% of the outstanding balance forgiven each year for 5 years. At the end of the 5 year period, nothing will have to be paid back!
Homeowners must:
- Be at least 3 months delinquent in their payments and have a reasonable liklihood of being able to resume mortgage payments and related housing expenses within 2 years.
- Have a mortgage on the property that is the principal residence of the borrower, and eligible homeowners may not own a second home.
- Demonstrate a good payment record prior to the event that produced the reduction in income.
State Housing Finance Agencies are currently setting up the program and will be ready to take applications sometime in the first quarter of this year.
In the meantime, if urgent help is needed right now, you can contact the Homeowners HOPE Hotline at (888) 995-HOPE
Please spread the word on this. It sounds like a wonderful program that will provide those who most need it with help to save their home.
UPDATE: I can see that this news is going over like a "lead balloon". Whether you all see the benefits or not, it will be a life line to numerous home owners keeping them in their homes until their personal circumstances improve enough for them to take over again. For all of the complaints that this administration has not been doing enough to help, I would have thought this news would've been much better received. Puzzling reaction to say the least.