EHLP May Spell HELP for At-Risk Homeowners
Sandra Allwine, who is in her sixties, has been struggling for two years to save her Arlington, Virginia, home from foreclosure, begging her bank to modify her $3,000 monthly mortgage payment.
Allwine, who is out of work, may have a new weapon in her arsenal to save her home. The new $1 billion Emergency Homeowners’ Loan Program , has as its targets homeowners like Allwine, who are among the most difficult to help; those who have fallen behind on their mortgages due to unemployment or overwhelming medical bills. For many in that situation, EHLP may spell the last chance to save their homes.
From an article on www.washingtonpost.com, reporter Cezary Podkul writes that during the housing boom of just a few years ago, millions of homeowners got easy, some say too easy, access to mortgages. Some mortgage lenders and government officials have finally taken action after realizing that many of these mortgage documents were botched.
If approved, the government will subsidize the mortgage of Allwine and others in her situation, for a maximum of $50,000 over two years. Subsequently, the interest-free loan will be forgiven over five years if she stays in her home and stays current on her payments.
EHLP is the newest government program to target the almost 1.8 million homeowners who are facing foreclosure. The program, which was supposed to start last year, met with the inevitable political delays. The upshot is that the Department of Housing and Urban Development must spend all of its $1 billion by the end of the federal government’s fiscal year, September 30.
That is literally around the corner for under-water homeowners; homeowners in 27 states have only until July 22 to complete their applications. From the Washington Post, “If demand outstrips available funds, HUD will run a lottery to pick successful applicants. Five additional states, including Maryland, are subject to slightly different rules, which gave them more time to spend the funds, because they started taking EHLP applications earlier under similar state-run programs.”
Across the country, HUD hopes to help 30,000 homeowners save their homes from foreclosure through the HELP of EHLP.
If your family is struggling with everyday financial difficulties or if you are facing possible foreclosure of your home, filing Chapter 7 or Chapter 13 personal bankruptcy could help you make a fresh start. For experienced and knowledgeable bankruptcy assistance, trust the attorneys from www.legalhelpers.com. Call toll-free 800-260-1402 today for your initial free consultation or come into one of their 100 sites across the country. Attorneys from Legal Helpers have helped over 56,000 consumers in the last three years discharge their debt. We may be able to help you, too.
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