$1 Billion in Homeowner Aid Offered

MortgageLoan.com ^ | 6/20/2011 3:52 PM | Peter King

[Graneros]

Homeowners facing foreclosure can now tap into a $1 billion program of emergency loans to help tide them over a temporary financial crisis, the Department of Housing and Urban Development (HUD) has announced.

Beginning today, homeowners in 27 states can file preliminary applications for the Emergency Homeowner's Loan Program (EHLP). Eligible homeowners can obtain interest-free loans of up to $50,000 to help cover mortgage expenses for up to two years.

The program is available to homeowners who have seen their incomes fall and who could lose their homes to foreclosure due to circumstances beyond their control, including involuntary unemployment, underemployment, economic conditions or an illness.

The program is a counterpart to the $7.6 billion Hardest Hit Fund and is available only to homeowners in states not covered by that program. The Hardest Hit Fund provides foreclosure avoidance assistance to homeowners in states that have been most seriously affected by the declining housing market and economic downturn.

The new initiative is expected to provide assistance to up to 30,000 homeowners, with loans averaging $35,000 each. Loans may be used to pay a portion of monthly mortgage bills, including missed mortgage payments or past due charges including principal, interest, taxes, insurances, and attorney fees.

Homeowners seeking assistance must complete a pre-application screening workshop by July 22 in order to be considered for the program. As demand is expected to exceed the amount of funding available, qualifying homeowners will be chosen at random to complete the application process.

More information on the program, including links to the pre-application worksheet, are available on the NeighborWorks web site at http://www.nw.org/network/foreclosure/nfmcp/EHLPconsumers.asp. NeighborWorks is partnering with HUD to carry out the program.

[Tzimisce]

See what following the rules gets you?

A big bill to bail out the guys who didn’t. LOL!

Now pay your taxes - your fellow freeloaders need the money. :)

[Nevadan]

Not only is this outrageous on its face, the fact that Nevada, the state that has been the hardest hit by the housing foreclosure crisis while at the same time has had the highest unemployment rate in the nation, is not even included in the latest giveaway of Obama cash.

[rawhide]

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.

What!! Forgivable!!!! The feds are crooks!

[headstamp 2]

“Never let a crisis go to waste”

[headstamp 2]

“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. “

Do I read this to mean, don’t sell the house for five years and you don’t have to pay it back?

[usconservative]

And the best part is, they don't have to pay it back.

Yep, more transfer of wealth in this country from those who work and play by the rules, to the lazy SOB's who won't work, bought more house than they could afford and got greedy, so the rest of us have to pay their bills.

This country is jacked up beyond repair. Help me Jesus, I'm an inch from going Postal.......

[usconservative]

Do I read this to mean, don’t sell the house for five years and you don’t have to pay it back?

YEP! That's the piece I was ranting about (above...)

Can you belive this shit?!

[LibsRJerks]

How do I feel? Like I’d like to CHOKE someone.

We’re $50K underwater or more, depending on which way the wind blows. Who helps us? No one. We rent the damn thing, for less than our mortgage payment. Take the hit every month (although we still own it and are paying it down). But it’s definitely hard on us to take that chunk out of our budget every month that we normally would not have to do.

I guess certain folks NEVER know a hardship ...they just get “help” while the rest of us have to f-in figure out HOW we’re going to do it without help — AND pay the enormous, outrageous taxes so these fools can get theirs ...

Do you know also that if you don’t live in it, you can’t write off the mortgage on taxes? We’ve been hit 2 years in a row with a $7K and this year a $4K extra load of taxes ...on top of what we already get stiffed with.

Why? Because we’re SUCCESSFUL — that’s why!!!!!

[LibsRJerks]

And you can guarantee these jerks are living in brand new places with the stainless steel fridge, the open floor plans, three car garages ...you name it.

WHO ok’d THIS bailout? Congress?

[stylin19a]

that’s how I’m reading it.

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/hcc/ehlp/how

[Borax Queen]

Super...
I guess I’ll just keep breaking my back to support the moochers and looters :(( Maybe they’ll let me keep a few alms so I can buy some Top Ramen.

[Borax Queen]

Isn’t that the truth!?! I see those home shows with new homeowners demanding/”wanting” everything. I was very happy with my fixer-upper 1960s dumpy house that bit by bit I, and then later with my husband, have worked on. It’s still only half-way remodeled, and we’ll never have a garage or stainless, etc., but at least we know we can pay the mortgage.

I’m sorry about the upside-down, my sister in NoCal is in a similar boat, crazy upside-down :(( They bought in the best suburb they could buy into at the time, before the boom. Now, the house next door to them is 100K, but because they both still work, they can’t get any loan modification or anything.

[LibsRJerks]

Under EHLP guidelines eligible homeowners can qualify for an interest free loan which pays a portion of their monthly mortgage for up to two years, or up to $50,000, whichever comes first.

********
The recipients will probably PAY OFF their homes with the aid ..then turn around the FLIP the homes and make off with a profit.

**************

“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. “Working with our community partners across the nation through NeighborWorks America, we are pleased to launch this program today in 27 states and Puerto Rico to help families keep their homes while looking for work or recovering from illness.”

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.

********

NeighborWorks?? Is this ACORN by another name?

Again — we’re $50K underwater ...do you think we’d qualify?

Oh, no ....nevermind. Income too high. We just have to take the loss and suck on it.

[CharlyFord]

I see a huge conflict of interest with people getting taxpayer subsidized money from the government and voting to elect the politicians that provide that taxpayer subsidized money.

I have a suggestion to fix that conflict! Anyone receiving taxpayer subsidized money should be prohibited from voting.

Anyone applying for a bailout under this program should have their voting rights revoked until the money is paid back.

[Borax Queen]

AGHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH

[LibsRJerks]

Ours is a dumpy 1987 model. It creaks and heaves and something is always in need of replacement or repair. . . the only thing is that it’s in a nicer neighborhood w/ a good lot. We are renting it to a younger couple that seem very interested in buying it from us — if we’re lucky.

If not, we may have to move back in — which we don’t want to do.

I’ve had daydreams once or twice about getting a hold of a gas can and a match ...(lol, kidding)

[Borax Queen]

LOL, I know, we have the same fantasies... that maybe the AZ wildfires would reach us (no chance, we’re in the city) and we could save the cats, photos, and guns, and run. hee.

Oh, that’s good that they might buy it! Speaking of my sister, she just called, and her renters are having issues with the house she has here... it’s a 1930s mud adobe so pretty solid, but someone stole the parts from the swamp cooler.... Always something but she’s responsible and not illegal, so it’s just sweatshop labor for her (and us) to pay for the looters.

[proudtobeanamerican1]

I was thinking I should get the interest free loan and pay of my mortgage with it!!!! ;0)

[Graneros]

"Anyone applying for a bailout under this program should have their voting rights revoked until the money is paid back."

You'll get no argument from me on that. But can you imagine a politician even the most conservative of the bunch even uttering that thought? Never in a trillion years.

[LibsRJerks]

No payment is due on the EHLP Note during the 5-year term so long as the assisted borrower remains current in their monthly mortgage payments, and meets other program requirements. If the homeowner meets these conditions, the principal balance due on their EHLP loan shall decline in equal portions of twenty percent (20%) annually, until the note is extinguished and the junior lien is terminated.

*****

So, what happens if they do NOT remain current in their payments, even if they receive the assistance?

Are they receiving direct cash assistance? Or, if it’s a “loan” or a “note,” whose to say now that they don’t have to pay rent, that they won’t blow it on Disney vacations, cigs, booze, bling, and what not.