Feds Extend Homeowner Assistance Program

By WY Daily Staff Sunday, September 04, 2011

Homeowners struggling to stay out of foreclosure can get some help through a federal government loan program that has been extended.

The U.S. Department of Housing and Urban Development and Neighborworks America reopened the application process for the Emergency Homeowners’ Loan Program (EHLP) in 27 states (including Virginia) and Puerto Rico to give more homeowners at risk of foreclosure extra time to apply.

While the application deadline was originally July 27, HUD estimates resources will be available to reach more struggling homeowners and will now take applications submitted through September 15.

EHLP aims to help Virginia homeowners who have experienced a reduction in income and are at risk of foreclosure due to involuntary unemployment or underemployment, due to economic conditions or a medical condition.

Eligible homeowners can qualify for an interest-free loan, which pays a portion of their monthly mortgage for up to two years, or up to $50,000, whichever comes first.

This emergency bridge loan will gradually be forgiven provided the homeowner remains on the property for five years.

Since EHLP funds are provided to qualified homeowners on a first-come, first-served basis, HUD reminds homeowners that it is critical to provide all required documents in a timely manner so as not to risk losing the opportunity to apply for assistance under the program. There is no cost to apply for this program.

Homeowners must contact a participating counseling agency for more information in order to determine their eligibility for the program and to apply for mortgage assistance. Find contact information for approved counseling agencies as well as access to the Applicant Screening Worksheet, the required Documents for All Applicants Checklist and more information on the program and its eligibility requirements online.

Homeowners can also call the toll free hotline, (855) FIND-EHLP (346-3345).