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Released: June 21, 2011
Real help for unemployed homeowners
It may sound like a classic foreclosure rescue scam: a limited time offer for a free government loan to save your home. But this time the offer is legitimate.
Homeowners who are unemployed and struggling to stay in their homes may be eligible to apply for emergency funding to avoid foreclosure, through the Department of Housing and Urban Development’s (HUD) Emergency Homeowner Loan Program (EHLP).
EHLP will provide a forgivable bridge loan of up to $50,000 to pay mortgage, tax and insurance bills for up to two years.
Pre-applications for the Emergency Homeowner Loan Program (EHLP) are available at www.findehlp.org or call (855) 346-3345 to apply.
Who is eligible to apply: Unemployed and underemployed homeowners (due to job loss or serious medical condition) who are at risk of losing their home, and are 90 days delinquent on their mortgage payment.
Where to apply: Contact a HUD-approved EHLP housing counselor at http://www.findaforeclosurecounselor.org/network/nfmc_lookup/ to learn where to submit applications in your area.
When to apply: Homeowners will only have until Sept. 15, 2011 to submit applications for these limited funds.
Homeowners should gather key documents now for the next stage of the application process.
Checklist of key documents:
- Most recent mortgage statement
- Written notice from employer indicating termination, or income reduction
- Notice from lender/servicer stating homeowner is at risk of foreclosure
- 2009 and 2010 tax returns for every person listed on the mortgage
- Documentation of current income (unemployment check stub, pay stub, SSI)
- Citizenship documents for those listed on the mortgage (passport, birth certificate) Other documents will be accepted from “qualified aliens”.
- IRS T4506-T form for every person listed on the mortgage
States eligible for EHLP emergency loans: AL, AR, CO, CT, DE, HI, ID, IA, KS, LA, ME, MA, MI, MO, MT, NE, NH, NM, NY, ND, OK, PA, SD, TX, UT, VT, VA, WA, WV, WI, WY, & Puerto Rico.
For assistance on how to apply for foreclosure prevention funds in every state homeowners should scroll down and click on their state, at www.findehlp.org. EHLP materials are available in Spanish, English, Chinese, Vietnamese, and Korean.
“We recognize that this offer sounds too good to be true, but for once, there really is government money available to help pay your mortgage if you are unemployed or underemployed,” says Consumer Action’s Ruth Susswein. “The catch is that homeowners only have a short time frame to take advantage of these limited funds. They must apply by Sept.15.”
For more details and documents visit: www.findehlp.org or call (855) 346-3345.
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