The Emergency Homeowner’s Loan is a program set up by the Department of Housing and Urban Development to prevent distressed homeowners from losing their homes. As the recession saw the loss of many jobs, it also caused the decline of many property values.
People who lost their jobs or took significant pay cuts were still struggling to make high mortgage payments on houses that had dropped in value. For many, this situation was not ideal and it was for this reason that millions of Americans lost their homes to foreclosures.
Government agencies have since stepped in with a $1 billion dollar aid program meant to help those in need make the payments on their homes. This program has been set up to provide interest-free aid to individuals who meet the program’s qualifications. Loans of up to $50,000 can be taken and repaid over a period of up to two years.
The Emergency Homeowner’s Loan works in conjunction with several federal government financial programs including the Treasury’s Hardest Hit Fund. This purpose of this fund is to assist homeowners and their families that were hardest hit by the effects of the recession.
There are conditions that must be met in order to qualify for the Emergency Homeowner’s Loan Program. First, homeowners must be at least three months behind on their mortgage payments. These payments must be owed to a legitimate financial institution and cannot be of a charitable nature.
The home must be the primary residence of the homeowner. This means it cannot be a second home, weekend cottage or other property that is not the primary residence of the borrower. The homeowner must also be able to show timely payments made in the past. This can be accomplished by providing your mortgage payment records prior to the job loss or event that caused the current condition of missed payments.
This program is granted at a local level and administered through a variety of state and non-profit agencies.
Photo by Findehlp.com
