The Emergency Homeowners Loan Program (EHLP) is a federal program designed to help struggling homeowners make payments to their mortgage company and stay in their homes.
Approved participant in EHLP are homeowners meeting the program’s standards who are given the benefit of zero interest loans. Such participating homeowners are individuals who have experienced a loss of income, of at least 15%, as a result of either the current economic downturn or as a result of a medical condition.
If the homeowner is deemed to qualify for EHLP and is an approved participant such a homeowner will receive one-time assistance to help with past due mortgage payments. EHLP is designed to help such homewoners by bringing them current on their first mortgage. EHLP also seeks to benefit such homeowners by assisting them in the payment of their monthly payments. EHLP is of a maximum duration of 24 months and a maximum loan amount of $50,000. This $50,000 is only applicable to their mortgage.
There are many guidelines for eligibility for this program. The applicant must be receiving a combined household income of less then $75,000.00. The loss of income must be a result of involuntary unemployment, underemployment or a serious medical issue. The applicant must be at least three months delinquent on mortgage payments. Proof from the mortgage company will need to be provided such as a Notice of Intent to Foreclose. The applicant must show likelihood that they will be able to take over the payments within 2 years. The applicants property must be a single family primary residence.
To find out if you are potentially eligible for an EHLP loan, fill out the short quiz on the HUD website. You can go to relevant HUD form by clicking here. For more details on what expenses are eligible for EHLP loan assistance see the Housing and Urban Development website, which can be found at http://portal.hud.gov/portal/page/portal/HUD. In order to qualify for a Chapter 13 bankruptcy your debts must fall within federal guidelines. As of April 1, 2011 your secured debt cannot exceed $1,081,400 and your unsecured debt cannot exceed $360,475. Secured debt consists of those debts that are secured by collateral. Automobile loans and home loans are both good examples of secured debt. Alternately, examples of unsecured debt include credit card debt and student loan debt.
Please note that the application deadline for the EHLP has expired. Please refer to HUD’s website for information regarding other available programs.
If you are interested in the Emergency Homeowners Loan Program or if you have any related questions call us today at (973) 500-8024 or (212) 960-8308, or submit your contact information below and we can contact you directly.