Homeowner delinquency has been a problem across the nation as various areas have seen differing levels of severity in unemployment or other housing issues, but for homeowners in New York, this particular state is one that has been selected to receive help from a new program to assist delinquent homeowners or help prevent more foreclosures when factors like joblessness are one of the main reasons that a homeowner simply can no longer pay their mortgage. Obviously, New York is not the only state where housing problems are being seen, as there are more severe areas of the nation that have been offered state-specific programs, but for areas that did not qualify for programs like the Hardest Hit Fund, alternative options are in place.
One reason that New York is mentioned is recent reports have shown that New York City, as an example, has seen a great deal of homeowners who are severely delinquent, but there are of course problems for homeowners throughout the state that need to be addressed too. Obviously, some areas of New York, and New York City for that matter, are seeing different problems arise and more severe situations, in terms of delinquency, than others but the new Emergency Homeowners’ Loan Program selected New York as one of the states where these forms of financial assistance and foreclosure prevention will be offered.
For homeowners who are unaware, the EHLP will offer loans to homeowners, at 0% interest, and for those who qualify, these loans can be discharged over time if certain conditions are met. Essentially, homeowners are in a position where they may qualify for aid to meet their mortgage payment up to a certain amount for a period of time during which they can continue to seek stable employment, which for some homeowners, has been a welcome form of assistance as they try to wade through a difficult job market.
While homeowners in New York are also able to take advantage of well-established foreclosure prevention programs like home loan modifications or even the federal Home Affordable Unemployment Program, more men and women may have recently heard coverage on the Emergency Homeowners’ Loan Program available in their state, but homeowners will have to move fast if they wish to take advantage in any state where this particular plan is being offered. Homeowners need to make sure that if they qualify for the EHLP initiative they get their applications submitted by July 22 as the funding for this program is being used up quickly by homeowners who are looking for unemployment assistance on their mortgage payment.
The good news though is some of the states that are seeing this program made available are those that may not have qualified for the Hardest Hit Fund, but are still in a situation where homeowners are finding it difficult to make their mortgage payment due to unemployment. Again though, homeowners can still simply work with a servicer to qualify for a federal or proprietary home loan modification in New York, but for those who may have not been able to benefit from current plans that are in place, there is one more route in the form of this loan program that may be helpful when it comes to preventing the loss of their home.