Posted on 10/06/2010 9:46:49 PM PDT by freespirited
A new program run by the Department of Housing and Urban Development allows delinquent borrowers who are unemployed or suffering from a severe medical condition to receive assistance with mortgage payments for up to 24 months.
The Emergency Homeowners Loan Program offers up to $50,000 to eligible borrowers at a 0% interest rate. HUD officials called it a true bridge loan because all deferred payments are forgivable provided the borrower lives in a home and remains current on payments for five consecutive years.
But the program isn't for everyone. Brian Sullivan, public affairs representative for HUD, said borrowers must have a consistent track record of making mortgage payments on time. A household's yearly income also may not exceed 120% of the area median income and must have had its income reduced by at least 15% in two years due to sudden unemployment, underemployment or a medical condition.
The property must be the borrower's primary residence and at risk of foreclosure.
"This is about families who were paying their mortgage, were current, were working, and then something happen," Sullivan told HousingWire. "It's for low- to middle-income, working families."
HUD announced plans for the program in August, after the agency was designated under Dodd-Frank to create an emergency homeowners assistance program with an allocated budget of $1 billion. Funding through the new program is only available in the 32 states and Puerto Rico that were not otherwise funded by the Hardest Hit Fund.
Borrowers must meet with their local NeighborWorks division or state finance agencies with HUD approved standards to receive funding. NeighborWorks is a national nonprofit organization created by Congress to provide financial support, technical assistance and concealing services to homeowners.
HUD hopes to begin accepting applications by the end of the year. HUD announced Tuesday how the $1 billion would be divided by state (chart below, in dollars):
absolutly criminal!!!!
aren’t they basically subsiding big banks under the guise of helping the little guy
To help Great Leader distribute the wealth of the nation fairly and to make amends for slavery and to usher in a Brave New World. Now hush up and get back to work.
Subsidized voters! FDR did it; why not Obama?
California is in the bag for Obama so I guess —no “freebies”
That is precisely what they’re doing. It’s just like unemployment benifits, which are a subsidy that allows large companies to lay people off with confidence that they won’t have another job when they’re needed again.
I’m sure these bailout programs are just ripe for fraud. I doubt they verify documentation for any of their so called conditions.
This amounts to $50k off your mortgage. Run out and sign up today!
No doubt you are right. All they need now is to partner with ACORN.
Welfare, it's a wonderful thing. It's nice to know we're not only paying for people to go on Cruise Ship vacations.
Jesus, what AN IDIOT I am for paying my mortgage!!!
Was I ever stupid for paying off the mortgage.
actually, the fact of the matter is that this is a shell game publicity stunt to make it sound like Obama has the liberals back, but the reality is that it is impossible to get this assistance .....No one is a year behind , in foreclosure and current on all payments and is on welfare and has a job
When does the Revolution start?
this is ridiculous
STOP. Take all the money and buy gold, gold futures, and Chinese equities. America is finished. The man who bet against the housing market and made $3 billion profit said this morning that the U.S. economy over the next 10 years will be "twice as bad as was Japan".
Lend money to people who can’t even pay their current
bills? Great idea, just great. Just like the govt to
come up with a plan like this.
actually, the fact of the matter is that this is a shell game publicity stunt to make it sound like Obama has the liberals back, but the reality is that it is impossible to get this assistance .....No one is a year behind , in foreclosure and current on all payments and is on welfare and has a job
Yes it seemed that way to me too. Ridiculous terms ...
$2,000 a month gift from his stash!!!!!!!!
(but for certain people only)
Sweet!!!!!
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