The Department of Housing and Urban Development released information on Monday regarding a program that many homeowners have been waiting for which may assist unemployed individuals with foreclosure prevention assistance through the Emergency Homeowners’ Loan Program, which is hoped to offer aid to those who are without a job in various states where unemployment has been particularly troubling. A similar assistance program was released months ago, which some homeowners may know as the Hardest Hit Fund, and has also brought about unemployment assistance opportunities for homeowners who are facing the loss of their home due to being in an area where the unemployment rate is much higher than the national average.
Yet, what homeowners have found in terms of these foreclosure prevention assistance options for those who are unemployed is that, when options like modifications are unavailable, subsidies or 0% interest loans that have been offered to unemployed homeowners have been a way to meet mortgage payments for a set period of time, and in the case of some of these loans, homeowners who meet certain qualifications will see this debt discharged over time. The Emergency Homeowners’ Loan Program though, is hoped to make unemployment assistance available in areas which may not have received funding from the HHF, but are still seeing problems related to foreclosure as a result of joblessness.
Homeowners who are looking for unemployment assistance may need to take special attention of the deadline for the EHLP as July 22 of this year has been set as the cutoff date for Pre-Applicant screening for those who are attempting to apply and see if they can qualify for this new home loan assistance plan. The EHLP though, can bring assistance to those who are underemployed or unemployed and can receive this loan which will help them bring their mortgage current, assist with current mortgage payments, and like some loans that are offered through the Hardest Hit Fund, there may be an option of forgiveness over a five-year period where the principal on this loan will be reduced if homeowners meet certain conditions.
While the pre-application process of screening opportunity is still available, homeowners are being prompted to explore this potential opportunity if it happens to be available in their state due to the fact that unemployment has remained incredibly troublesome for some and in cases where modifications are not beneficial in terms of foreclosure prevention, these alternative plans have been vital when it comes to homeowners saving their property. As always, there is no guarantee since some homeowners may simply not be qualified, but for those who do have this opportunity available and are still struggling under the weight of unemployment, it’s hoped that not only are federal initiatives that have been in place for years will be continually helpful for some but plans like the Hardest Hit Fund and the Emergency Homeowners’ Loan Program will assist in the affordability of home loan payments for those who are without employment right now.