Free money! That's what everyone wants to hear but for homeowners who are underwater this is music to their ears! The government started this program last week called the Emergency Homeowners Loan Program.
To be eligible for this program:
- Income Thresholds: Has a total pre-event household income equal to, or less than, 120 percent of the Area Median Income (AMI), which includes wage, salary, and self-employed earnings and income.
- Significant Income Reduction: Has a current gross income that is at least 15 percent lower than the pre-event income
- Employment type: Both wage and salary workers and self-employed individuals are eligible.
- Delinquency and Likelihood of Foreclosure: Must be at least three months delinquent on payments and have received notification of an intention to foreclose.
- Ability to Resume Repayment: Has a reasonable likelihood of being able to resume repayment of the first mortgage obligations within 2 years
- Principal Residence: Must reside in the mortgaged property as principal residence. The mortgaged property must also be a single family residence
So if you are eligible you might be able to recieve up to $50,000 that won't have to be repaid. Free money!! whoo hoo...but come on there's a catch right?...of course.
This can be terminated if:
- The maximum loan ($50,000) amount has been reached;
- The homeowner fails to report changes in unemployment status or income;
- The homeowner’s income regains 85% or more of its pre-event level;
- The homeowner no longer resides in, sells, or refinances the debt on the mortgaged property; or
- The homeowner defaults on their portion of the current first lien mortgage loan payments.
If this happens then the government will want you to repay all of the monies which have been used. So be careful what you wish for, there's always a catch with free money. Not all states qualify...below is the link for more information about this program. Applications are being taken by the end of the year.
http://www.hud.gov/offices/hsg/sfh/hcc/msgs/EHLP100810.pdf
For more information contact Marci Greenberg Cox at 602-953-4000 or email at info@movinwithmarci.com
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