The Department of Housing and Urban Development has selected CredAbility to help homeowners with reduced income apply for federal funds to avoid foreclosure.
The national nonprofit credit counseling agency can now accept applications from homeowners in 17 states for the new Emergency Homeowners’ Loan Program, which will provide $1 billion to approximately 30,000 homeowners who are facing foreclosure.
The EHLP program is designed to help homeowners who are delinquent on mortgage payments due to unemployment or large medical expenses bring their mortgage loan current and make future mortgage payments. To be eligible for EHLP, homeowners must have a minimum income reduction of 15%, income has to be less than 120% or $75,000 below their area median income and be at least three months behind on mortgage payments as of June 1.
Homeowners who receive mortgage assistance through this program can get help for two years at a maximum total of $50,000. They will also obtain a 0% interest loan that covers the amount of mortgage payments past due on their primary residence and pay 100% of the delinquent amount to be paid to cover property taxes, mortgage and hazard insurance premiums, homeowner association fees and foreclosure-related fees.
CredAbility can receive applications for the EHLP program, which can be submitted until July 22, from homeowners in New York, Massachusetts, Texas, Wisconsin, Colorado, Washington, Oklahoma, Missouri, Minnesota, Louisiana, West Virginia, Iowa, Kansas, Utah and New Mexico. All homeowners will be notified before October 1 if they have qualified for this program.
