Taxpayers to give $1 billion to HUD to bail out 30,000 hand-picked homeowners
Are you having trouble paying your bills? Did your money tree perish in the backyard? If so, members of Congress have given the U.S. Department of Housing and Urban Development (HUD), $1 billion to help a small group of homeowners avoid losing their homes.
It is no secret that the lagging economy lent a hand to collapsing the nation’s housing market, but picking winners and losers or class warfare will only anger millions of homeowners who are forced to solve their housing issues without government help.
HUD allotted funds to 27 states to help distressed homeowners who have fallen behind on their payments with “Emergency Homeowners’ Loan Program (EHLP).” However the left-leaning state of California, who has been hit hard by the recession, was left off HUD’s relief program.
As part of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Congress, HUD will receive $1 billion in taxpayer funds 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, underemployment, due to economic conditions or a medical condition,” according to HUD.
The mortgage modification program qualifies eligible homeowners for an interest free $50,000 loan which pays part of their monthly mortgage for two years.
“Through the Emergency Homeowners’ Loan Program, the Obama Administration is continuing our strong commitment to help keep families in their homes during tough economic times,” said HUD Secretary Shaun Donovan.
EHLP is expected to assist approximately 30,000 homeowners with an average loan of $35,000.
The new government program will cover approved applicant’s monthly mortgage including missed payments or past due charges including principal, interest, taxes, insurances, and attorney fees.
“Through our work around the country, NeighborWorks® America knows all too well that in these tough economic times, homeowners facing foreclosure are seeking help wherever they can find it. The deadline is July 22, 2011, so we encourage homeowners to apply now in order to find out if they qualify for this new mortgage assistance program and learn more about the many options available to assist those with housing needs,” stated Eileen M. Fitzgerald, CEO of NeighborWorks® America.
The EHLP program complements the “Hardest Hit Fund” which handed out approximately $7.6 billion to 18 states hardest hit by the housing crisis. Millions of Americans have foreclosed on their homes during this current housing crisis.
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