Texans struggling to pay their mortgage and facing foreclosure have only one day left to apply for the Emergency Homeowners' Loan Program.
The program provides interest-free, forgivable loans up to $50,000.
The information below is from a news release from the U.S. Department of Housing and Urban Development.
Congress provided $1 billion dollars to HUD, as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, to implement EHLP. The program will assist homeowners who have experienced a reduction in income and are at risk of foreclosure due to involuntary unemployment, underemployment, due to economic conditions or a medical condition.
HUD allocated $135,418,959 to fund this emergency loan program in Texas.
EHLP can provide eligible homeowners with a zero percent interest, forgivable loan that pays past-due mortgage payments (principal, interest, taxes, insurance, attorney fees), as well as a portion of the homeowner's mortgage payment for up to 24 consecutive months, or up to $50,000, whichever comes first, and provided that certain eligibility requirements are maintained.
"Through the Emergency Homeowners' Loan Program the Obama Administration is continuing our strong commitment to help keep families in their homes during tough economic times," said HUD Secretary Shaun Donovan. "Working with our community partners across the nation through NeighborWorks® America, we are pleased to launch this program today in 27 states and Puerto Rico to help families keep their homes while looking for work or recovering from illness."
The EHLP program will pay a portion of an approved applicant's monthly mortgage including missed mortgage payments or past due charges including principal, interest, taxes, insurances, and attorney fees. Nationally, EHLP is expected to aid up to 30,000 distressed borrowers, with an average loan of approximately $35,000.
Contact information for participating agencies, the Pre-Applicant Screening Worksheet and more information on the EHLP program and its eligibility requirements can be found at www.FindEHLP.org or by calling toll free at 855-FIND-EHLP (346-3345).