SEATTLE NEWS ARCHIVES & FEATURES
HUD sets July 22 deadline for mortgage assistance
Jul 5, 2011, 10:00 AM | Updated: Mar 4, 2016, 5:59 am
Washington state homeowners who have suffered a job loss or job cutback have until July 22 to apply for federal loans that will cover a portion of their mortgage payments for up to 24 months.
These Emergency Homeowners Loan Program assistance loans (EHLP) also pay off all “eligible” arrearages on the existing mortgage, according to the Department of Housing and Urban Development.
HUD is relying on NeighborWorks America and its local organizations and housing counselors to identify and qualify struggling borrowers for this $1 billion assistance program.
Contact information for participating agencies, the Pre-Applicant Screening Worksheet and more information on the EHLP program and its eligibility requirements can be found at www.FindEHLP.org or by calling toll free at 855-FIND-EHLP (346-3345).
The department estimates the program could aid up to 30,000 at-risk borrowers with an average loan of $35,000.
However, these funds have to be obligated by September 30 under the program approved by Congress last summer.
To qualify, delinquent homeowners must document that they have suffered at least a 15 percent drop in income and their total income does not exceed $75,000 or 120 percent of the area median income.
Eligible candidates are expected to use 31 percent of this income to cover part of their monthly mortgage payment. The zero-interest EHLP loan will cover the rest.
HUD was slow in getting the program guidelines out and the funds have to be obligated by September 30 or they go back to the U.S. Treasury.
