Finally, unemployed homeowners in the U.S. can now gain access to government loans that can help them to stave off the dreaded foreclosures that are currently plaguing so many.
After numerous delays and bids to kill off the program before it started, the new Emergency Homeowner’s Loan Program has been launched by the Obama administration, which will enable unemployed homeowners to keep up with their mortgage repayments.
Under the program, those who qualify will be entitled to up to $50,000 of interest-free loans from the US Department of Housing and Urban Development, for up to five years. What’s more, the loan may even be forgiven should the homeowner remain in the property for five years.
In order to qualify for what many will see as a lifesaver, homeowners must be at least three months overdue on their mortgage payments, and must also show that they have a reasonable chance of resuming payments within two years. Furthermore, the must show that their income has decreased by 15% or more, that the property is their primary residence and that they do not own any other properties anywhere.
Not everyone has access to this program though; only those resident in Pennsylvania, Maryland, Connecticut, Idaho and Delaware can access the program.
For residents in other states, they will have to hang on until the launch of the NeighborWorks America federal funding plan, which will be available in 27 states, while others not covered by this, including California, Michigan and Nevada will instead have to rely on Treasury Department aid, where $7.6 billion has been allotted for homeowner assistance.