Homeownership Preservation Foundation to Help Unemployed Homeowners Secure Mortgage Payment Relief via $1 Billion Government Program Ending September 15
Homeowners with Significant Income Reduction Due to Involuntary Unemployment, Underemployment, or Medical Condition Can Apply for HUD Forgivable Loan Program
WASHINGTON–( BUSINESS WIRE )–The Homeownership Preservation Foundation (HPF), an independent national nonprofit dedicated to helping distressed homeowners navigate financial challenges and avoid mortgage foreclosure since 2004, today urged homeowners who have experienced a significant income reduction due to involuntary unemployment, underemployment, or a medical condition to apply for mortgage payment relief through the Emergency Homeowners’ Loan Program (EHLP), a $1 billion federal assistance program tailored to their specific circumstances that ends September 15th.
“The Homeownership Preservation Foundation is proud to continue its role as a trusted, reliable source of help for financially distressed homeowners, and to be a key part in HUD’s EHLP initiative.”
Sponsored by the U.S. Department of Housing and Urban Development (HUD), EHLP is a zero-interest, forgivable bridge loan program designed specifically to help unemployed and underemployed homeowners facing significant threat of foreclosure avoid that outcome. Qualifying homeowners who meet certain income and mortgage delinquency parameters can apply for a bridge loan of up to $50,000 to fund no more than 24 months of mortgage payments on their principal residence. The loan is forgivable over a five-year reduction period.
“The Emergency Homeowners’ Loan Program is a much-needed ‘hand up’ for distressed homeowners whose reduced incomes and employment status may have otherwise rendered their odds of avoiding foreclosure rather dismal, and we strongly urge qualified homeowners to consider applying before the September 15th deadline,” said Colleen Hernandez, HPF’s CEO. “For homeowners that stay in the home five years after the EHLP loan is originated, the debt is essentially forgiven. There’s no repayment required.”
Financially challenged homeowners who meet the following may be eligible for financial assistance via EHLP:
- Employment Status: Must be involuntarily unemployed (or underemployed) due to adverse economic conditions and/or a medical emergency
- Mortgaged Property: Domicile must be a single-family residence and the homeowner’s primary residence
- Income Restrictions: Homeowner must be experiencing an income reduction of 15 percent or more due to a change in employment status, with a total household income no greater than $75,000 or 120 percent of the Area Median Income (AMI) for a household size of four people
- Mortgage Delinquency Status: Homeowner must be able to demonstrate that he/she is three or more months delinquent on mortgage payments
- Foreclosure Prospects: Homeowner must be facing significant likelihood of foreclosure, as evidenced by receipt of a foreclosure notice from their lender
- Ability to Restart Payments: Homeowner must demonstrate a realistic likelihood of restarting mortgage obligations, as well as other housing expenses and debt obligations, within two years
Applications are being accepted via HPF and other participating housing counseling agencies until September 15th. Interested homeowners are encouraged to call the Homeowner’s HOPE™ Hotline at 888-995-HOPE™ for more information about the program, including eligibility requirements. Through the HOPE Hotline, HPF provides comprehensive financial education and confidential foreclosure prevention counseling for FREE, 24 hours a day, 7 days a week, 365 days a year, in more than 170 languages.
“These EHLP bridge loans offer unemployed and underemployed mortgagees some economic breathing room so that they focus on turning around their employment status without the additional stress and pressure of worrying about losing their home,” said Ms. Hernandez. “The Homeownership Preservation Foundation is proud to continue its role as a trusted, reliable source of help for financially distressed homeowners, and to be a key part in HUD’s EHLP initiative.”
About the Homeownership Preservation Foundation
The Homeownership Preservation Foundation (HPF) is an independent national nonprofit dedicated to helping distressed homeowners navigate financial challenges and avoid mortgage foreclosure. HPF guides consumers onto the path of sustainable homeownership and develops innovative solutions to preserve and expand homeownership. Through its Homeowner’s HOPE™ Hotline, 888-995-HOPE™, HPF provides comprehensive financial education and confidential foreclosure prevention counseling for FREE, 24 hours a day, 7 days a week, 365 days a year, in over 170 languages. Since 2007, HPF has served more than four million distressed homeowners, an average of 5,500 each weekday, who depend upon HPF as a trusted, neutral source of information and assistance. For more information about the Homeownership Preservation Foundation or the Homeowner’s HOPE™ Hotline, please visit www.995hope.org