CONGRESSMAN RUBÉN HINOJOSA ANNOUNCES EMERGENCY HOMEOWNERS� LOAN PROGRAM TO HELP HOMEOWNERS AT RISK OF FORECLOSURE
(The Pre-Applicant eligibility screening period will run through July 22, 2011)
WASHINGTON, D.C. – July 7, 2011 – (RealEstateRama) — Congressman Rubén Hinojosa announces a new federal program, the Emergency Homeowners Loan Program (EHLP),that will directly help qualifying homeowners with their mortgage.
Congress provided $1 billion dollars to HUD, as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, to implement EHLP. The program will assist homeowners who have experienced a reduction in income and are at risk of foreclosure due to involuntary unemployment or underemployment, due to economic conditions or a medical condition.
“Unfortunately the Rio Grande Valley is not immune to the economic downfall we have experienced across the nation,” said U.S. Rep. Hinojosa. “However we continue to see the commitment from President Obama to build our economy and to stand by our citizens. The EHLP is one example of how helping those in need will help our community thrive.”
The Emergency Homeowners Loan Program will offer a zero interest, forgivable bridge loan to homeowners who have experienced a substantial loss of income (a reduction of at least 15%) due to unemployment or underemployment caused by adverse economic conditions or medical condition. Approved homeowners are eligible to receive one-time EHLP assistance to pay certain arrearages to bring them current, as well as ongoing monthly assistance to help them to make their monthly first lien mortgage payments (including payments of principal, interest, taxes, and insurances). Assistance is limited to a maximum duration of 24 months, or up to a maximum loan amount of $50,000 in mortgage payment assistance, whichever occurs first. The EHLP loan is secured by a junior lien against the approved homeowner’s principal residence and is forgivable over a 5-year principal reduction period.
“I encourage anyone who is struggling with their home mortgage to apply for the Emergency Homeowners’ Loan Program,” said U.S. Rep. Hinojosa. “Those who qualify and are approved will have the opportunity to be assisted with their housing needs.”
The EHLP funds will pay a portion of an approved applicant’s monthly mortgage including missed mortgage payments or past due charges including principal, interest, taxes and insurance. EHLP is expected to aid up to 30,000 distressed borrowers, with an average loan of approximately $35,000.
The U.S. Department of Housing and Urban Development (HUD) in conjunction with NeighborWorks® America is working with local entities such as Affordable Homes of South Texas Inc. (AHSTI) to reach out to homeowners who qualify for the EHLP.
Those interested can attend a press conference at the Affordable Homes of South Texas, Inc., office at 9:00 a.m. on Friday, July 8, 2011 at 1420 Erie Ave. McAllen, Texas. (Corner of 15th and Erie Ave.)
Contact information for participating agencies, the Pre-Applicant Screening Worksheet and more information on the EHLP assistance and its eligibility requirements can be found at www.FindEHLP.org or by calling toll free at 855-FIND-EHLP (346-3345).
About the U.S. Department of Housing and Urban Development (HUD)
HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.
