Well Trendsetters, this article will conclude our series on homeowner foreclosure prevention options.  I hope that this series has provided you with a wealth of resources as well as leverage to help you FIGHT to stay in your home! 

The last program we are going to discuss is what we may consider the sister to the Hardest Hit Fund.  As most of you are aware, not all states participated in the Hardest Hit Fund.  In light of that, The Dodd-Frank Wall Street Reform and Consumer Protection Act provided $1 Billion to HUD so that they could implement the Emergency Homeowners’ Loan Program (EHLP).  

EHLP will be available in the following states: Alaska, Arkansas, Colorado, Hawaii, Iowa, Kansas, Louisiana, Maine, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Mexico, New York, North Dakota, Oklahoma, South Dakota, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming.  It will also be offered in Puerto Rico.

EHLP is designed to provide mortgage payment relief to homeowners experiencing a 15% decrease in income as a direct result of involuntary unemployment or underemployment due to adverse economic conditions.  The Emergency Homeowners Loan Program will offer a zero percent interest, deferred payment loan for up to a maximum of $50,000 or 24 months, whichever occurs first, to assist homeowners’ with payment of arrearages and monthly mortgage payment assistance on their first mortgage.  Approved homeowners are eligible to receive one-time EHLP assistance to pay certain arrearages to bring them current, as well as ongoing monthly assistance.  This loan is secured by a junior lien against the property and is forgivable over a 5 year principal reduction period.

ELIGIBILITY REQUIREMENTS:

• INCOME LIMITS: The applicant household income must be equal to or less than the greater of $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 and/or medical emergency/serious injury.
• MORTGAGE DELINQUENCY: Applicant must be THREE months behind mortgage payments.
• FORECLOSURE STATUS: Applicant must have received notification from their lender of intent to foreclose due to delinquency.
• ABILITY TO RESUME PAYMENT: Applicant must show a reasonable likelihood of being able to resume payments on their first mortgage within 2 years as well as meet other housing expenses/debt obligations.
• RESIDENCY: The home must be the applicants principal residence at the time of application and for the duration of the loan period.

PROGRAM TERMS AND CONDITIONS

• MORTGAGE PAYMENTS/BORROWER CONTRIBUTION: Homeowners contribution to the monthly payment on the first mortgage will be set at 31% of their monthly income at the time of application and will not be less then $150 per month.  EHLP funds will be used to pay the remainder of the balance.

• LOAN REPAYMENT: No payment is due on the EHLP loan during the 5 year term as long as the borrower remains current in their monthly mortgage payments and meets other program requirements.  If these conditions are met, the principal balance owed shall decline in portions of 20% annually, until the note is extinguished and the junior lien is terminated.

To locate a EHLP counseling agency near you or to get additional information on applying for EHLP, visit this website HTTP://EHLP.NW.ORG or call 855-346-3345.

REMEMBER…EDUCATION AND TIME ARE THE KEY FACTORS TO HELPING YOU AVOID FORECLOSURE!  For additional information or to schedule a FREE consultation, contact us today! DON’T LET TIME RUN OUT!

TAMMIE SELDON
DISTRESSED PROPERTY EXPERT
ATLANTA PROPERTY SHOPPE AT KELLER WILLIAMS REALTY
OFFICE: 404-419-3696
FAX: 678-668-8060
WEBSITE: WWW.ATLANTAPROPERTYSHOPPE.COM
WEBSITE: WWW.MYLIFEWITHOUTFORECLOSURE.COM
EMAIL: TAMMIE@ATLANTAPROPERTYSHOPPE.COM
TWITTER: @ATLPROPERTYSHOP