For unemployed homeowners who are looking for mortgage payment assistance, it needs to be remembered that tomorrow, July 22, marks a key date in the Emergency Homeowners’ Loan Program as homeowners who hope to qualify for this particular foreclosure prevention assistance plan need to make sure that they have their pre-applicant screening worksheet and third-party authorization documents submitted by the July 22 deadline in order to qualify for help from the EHLP. The good news that some homeowners may have heard recently is that both Fannie Mae and Freddie Mac have also directed their servicers to participate in this program and, as a result, many of the nation’s top financial institutions are going to be able to accept this particular plan that homeowners may qualify for as a way to keep homeowners in their home during these financially difficult times.
Ideally, homeowners who qualify for the Emergency Homeowners Loan Program will be able to get mortgage payment assistance for up to two years or $50,000, if factors like unemployment or medical conditions have arisen. This plan, in terms of who it hopes to help, is similar to other federal foreclosure prevention efforts as homeowners who may have either lost their job, seen cutbacks in their income, or who may have fallen behind on their mortgage payment because of an illness or injury may all be able to avoid the loss of their home or find some form of relief when they have fallen behind on their mortgage payments through this particular initiative, but homeowners need to understand that this is not their only option if they are in need of mortgage payment help.
While the Emergency Homeowners’ Loan Program was meant to be a supplement for homeowners in states that did not receive assistance from the Hardest Hit Fund, homeowners need to remember that there are also modification programs or assistance plans directly available from mortgage servicers. Also, since this particular loan program is focusing on helping unemployed homeowners, there are recent changes that have been made to federal programs that may offer a forbearance on a homeowner’s mortgage payments for up to a year through the Home Affordable Unemployment Program.
These alternatives are mentioned simply because the EHLP is limited in scope and will not be able to help every homeowner who applies, as there are applications that are required and then a selection process that homeowners must go through before they may be considered for this type of assistance. Understandably, the opportunity to receive a loan that will help make mortgage payments and then, when requirements are met, will be discharged is something that can be beneficial to numerous homeowners, but the deadline for these applications will be July 22 and for homeowners who may not qualify, it needs to be remembered that there are other options available before a homeowner loses their home.