By now many homeowners have heard of the new Emergency Homeowners’ Loan Program, whose deadline for homeowners to apply is soon and falls on July 22. However, what homeowners may have overlooked when hearing news of this program is that this plan is not particularly for unemployed homeowners alone, as some of the criteria that homeowners can also meet to make them eligible for this financial assistance option is that they can be unemployed but also, underemployed or facing financial hardship due to a medical emergency.
This may open the door for more homeowners, particularly those who may have seen a reduction in their wages or have experienced financial setbacks due to medical needs that suddenly arose without warning, but homeowners who are facing unemployment as well do have the option of applying for this new initiative. The EHLP is hoped to target homeowners who will be in a position where preventable foreclosure could lead to mortgage payment stability in the future, as homeowners do have to show that there is the likelihood that they will be able to resume making their mortgage payment within the timeframe that this assistance is offered.
Yet, some homeowners felt that this was only an option for those who are unemployed, as unemployment has been one of the major strains on the housing market, but there are also opportunities for those who have simply seen a severe reduction in their income or who may have faced problems when medical emergencies arose, as some injuries or illnesses have caused workers to either lose their job or may have put them out of commission for a long period of time.
It is to be understood though, this program is moving along quickly and homeowners must make sure that they get their application filed soon since, once again, at the end of this month the deadline will come. Understandably, numerous homeowners will likely want to take advantage of this interest-free home loan assistance plan, which can offer mortgage payment paid for up to two years, but not everyone will be allowed to participate in the program as funding will be limited and, in some cases, homeowners who applied first may be given preference when these applications are being reviewed.
While the requirements of this particular plan will not allow all homeowners to see the foreclosure prevention assistance they need at the present time, underemployed homeowners and those who are victims of a medical emergency resulting in their inability to make their home loan payment need to understand that they too may qualify for this plan, and if reasonable proof can be shown that a homeowner will be in a better position at a later date, in terms of their job, income, or health, this could be another factor that will help them meet the necessary requirements for this mortgage payment assistance option.