Real Help to Homeowners in Foreclosure - Act NOW!

Applications are currently being accepted for the Department of Housing and Urban Development’s Emergency Homeowners’ Loan Program (EHLP). The application period will close July 22nd. The EHLP is designed to provide mortgage payment relief to eligible homeowners experiencing a drop in income of at least 15% directly resulting from involuntary unemployment or underemployment due to adverse economic conditions and/or a medical emergency.

Through the EHLP, homeowners are eligible to receive funds to bring the mortgage current and ongoing assistance paying the monthly mortgage payment. Assistance is in the form of a loan that will act as a second mortgage on the property. The maximum amount of assistance is either $50,000, or 24 months of assistance – whichever happens first. Homeowners must be able to contribute a portion of the monthly mortgage payment.

Other EHLP eligibility requirements include*:

  • Income Limit: Your total household income,  before the financial set-back, must be equal to, or less than, the greater of either $75,000 or 120 percent of the Area Median Income (AMI) for a household size of four (4) persons (regardless of the real size of your family).
  • Delinquency: You must be at least three months late on mortgage payments
  • Likelihood of Foreclosure: You must have notification of your lender’s/servicer’s intention to foreclose on your mortgage as a result of the delinquency, and you must also certify that without assistance your mortgage will be foreclosed upon.
  • Ability to Resume Payment: You must be able to show that you will be able to resume mortgage payments within two years. You must also be able to show that you will be able to meet other housing expenses and debt obligations as your income rises.
  • Principal Residence: The program is only for people who are currently are and will continue to live in the affected property as their primary residence. The mortgaged property must also be a single family residence (1 to 4 unit structure or condominium unit).

Not everyone who applies and qualifies for this program will receive assistance. Funds are limited and homeowners will be selected randomly. It is critical to make sure your pre-applications are as complete as possible.

For more information contact one of American Financial Solutions certified housing counselors. You can also learn more information and complete the pre application by visiting www.findehlp.org.