Program Would Offer Interest-Free, Forgivable Loans
WASHINGTON, DC – July 18, 2011 – (RealEstateRama) — U.S. Senator Tom Udall (D-NM) today urged New Mexicans who are at risk of foreclosure to take advantage of a new federal program that has made more than $10 million available in interest-free, forgivable loans to help residents keep their homes. He encouraged people to act quickly because funding is limited and the deadline to apply is short.
“If you or someone you know is in danger of losing their home because of this recession, this new federal program may be able to help,” Udall said. “While it won’t be able to help everyone because of limited funding, this program has the potential to serve as an important lifeline for a number of folks who, through no fault of their own, are struggling to keep a roof over their heads.”
The funding comes through the Emergency Homeowners’ Loan Program (EHLP), which was created by the Wall Street Reform law that Congress passed last year. It provides mortgage assistance of up to $50,000 in interest-free, forgivable loans to homeowners who are in danger of foreclosure because of unemployment, underemployment or a temporary medical condition.
The deadline for pre-application is July 22, and funds are limited. To access the application, click here.
EHLP is coordinated by the U.S. Department of Housing and Urban Development (HUD) and the non-profit NeighborWorks. Homeowners who qualify for the program receive interest-free, forgivable loans to pay past-due mortgage payments (principal, interest, taxes, insurance, attorney fees), as well as a portion of the homeowner’s monthly mortgage payment for up to 24 consecutive months, or up to $50,000, whichever comes first, and provided that certain eligibility requirements are maintained.
For more information on the program: http://ehlp.nw.org.