Application Period Only Open for One Month
Early last week, The Department of Housing and Urban Development (HUD) announced $1 billion in funding through the Emergency Homeowners’ Loan Program (EHLP) meant to help homeowners struggling with monthly mortgage payments due to unemployment, underemployment, illness or injury.
In a recent article on HSH.com, Tim Manni reports that EHLP will “help these homeowners pay a portion of their monthly mortgage payments for up to two years or provide up to $50,000, whichever comes first. HUD, who is administering the program along with NeighborWorks, expects to reach up to 30,000 distressed homeowners with loan amounts which are expected to average $35,000.”
HUD’s site notes that EHLP is intended to complement the “Hardest Hit Fund,” which is funded with $7.6 billion to provide housing relief to the 18 states (and Washington D.C.) that suffered the most from the housing crisis. The launch of EHLP means that mortgage assistance programs for the unemployed and underemployed are available in every state.
To be considered for EHLP, homeowners must complete a pre-application screening workshop by July 22, 2011. Actual assistance recipients will be chosen at random from the pool of qualified applicants, as HUD expects demand to exceed available funding. NeighborWorks, a congressionally-chartered nonprofit organization dedicated to improving distressed communities, is partnering with HUD to administer the program.
More details, including links to the pre-application worksheet, can be found on NeighborWorks’ site here.