July 21 (Source By Merced Sun-Star, Calif.) – The Department of Housing and Urban Development said its emergency home loan program is designed to provide mortgage payment relief to eligible homeowners experiencing a decrease in income of at least 15 percent directly resulting from involuntary unemployment or underemployment because of adverse economic conditions or a medical emergency.Other program eligibility requirements include:
Delinquency: Applicant must be at least three months delinquent on mortgage payments, as signified by notification by his first-lien lender.
Principal residence: Applicant must live in the mortgaged property as his principal residence. The mortgaged property must also be a single family residence (one- to four-unit structure, manufactured housing, cooperative or condominium unit).
Likelihood of foreclosure: Applicant must have received notification of his lender’s intention to foreclose on his mortgage as a result of the delinquency, and must also certify to the likelihood that their mortgage will be foreclosed upon.
Income limit: Applicant has a total household income equal to, or less than, the greater of either $75,000 or 120 percent of the area median income for a household size of four persons previous to the loss of income resulting from involuntary unemployment, underemployment or medical emergency or serious injury. Income includes wages, salary and self-employed earnings and income.
Mortgage cost burden: Under his current reduced income, the applicant’s monthly mortgage payment is greater than 31 percent of his monthly income.
Ability to resume payment: Applicant must have a reasonable likelihood of being able to afford and resume repayment of monthly mortgage and all other household debt obligations when re-employed, in accordance with program qualification guidelines.
For more information, go to http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/hcc/ehlp/who.
Source By Merced Sun-Star, Calif.
To see more of the Merced Sun-Star or to subscribe to the newspaper, go to http://www.mercedsunstar.com.
Copyright (c) 2011, Merced Sun-Star, Calif.
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A service of YellowBrix, Inc. Publication date: 2011-07-21
The EHLP program seems to be failing due to the requirements being too strict, or more accurately, inappropriate. They didn’t do their homework before writing the rules. In order to qualify, a homeowner must have had a very specific type of event leading to a specific percentage of lost income. That’s all fine, however, this must have occurred in 2009 or later. The height of the recession was in 2008. Those of us who’s jobs ended in 2007 or 2008 are just now exhausting all savings, credit, insurance and other resources and we are the people currently facing foreclosure. Those without resources have already lost their homes, and those who lost their income later, are not yet delinquent on their mortgages. I’m not the only one. I was number 15 on my county’s waiting list a week ago. I was called up this week for the full application process. That means 15 other borrowers were pre-screened, selected and then rejected. My counselor is frustrated because she can’t help the people who need it due to these technicalities. The county said the same thing. Their hands are tied. That have to follow the guidelines as they are written, so they can’t give out these loans and the money is not going to help anyone. If you are a constituent of Reps Frank or Dodd, who sponsored the bill creating this program, please call or write to them so they know this is program needs immediate revision. If you work for HUD, please tell someone. If you are a journalist, please investigate.
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