October 6, 2010 HUD has announced another program to help homeowners who are having trouble making their payments. HUD will provide $41,286,747, to help struggling homeowners in Coloradothrough its Emergency Homeowners Loan Program (EHLP). EHLP will provide assistance for up to 24 months for homeowners experienced a substantial reduction in income due to involuntary unemployment, underemployment, or a medical condition and are at-risk of foreclosure. 32 states qualify for this emergency money provided and is based on the each states unemployment rate. HUD is stating the program will be up and running by the end of the year.
Who Will Be Helped: The program will complement existing Administration efforts to assist struggling Colorado homeowners- including the Home Affordable Modification and Hardest Hit Fund initiative administered by the U.S. Treasury Department. Under the EHLP:
- the borrower must be at least three month delinquent in their payments and have a reasonable likelihood of being able to resume repayment of their mortgage payments and related housing expenses within two years
- the property must be the principle residence of the borrower, and eligible borrowers may not own a second home
- the borrower must have suffered at least a 15 percent reduction in income and have been able to afford their mortgage payments prior to the event that triggered the loss income.
How They Will Be Helped
The HUD Emergency Homeowners Loan Program will offer a forgivable, deferred payment "bridge loan" (zero percent interest, non-recourse, subordinate loans) for up to $50,000 to assist eligible borrowers with their mortgage arrearages and payments on their for mortgage principal, interest, mortgage insurance premiums, taxes and hazard insurance for up to 24 months.