14.323: Emergency Homeowners’ Loan Program

14.323

Inactive

Assistant Secretary for Housing - Federal Housing Commissioner [HUD]

July 12, 2013

July 28, 2012

To provide assistance to homeowners who are at risk of foreclosure and have experienced a substantial reduction in income due to involuntary unemployment, or underemployment due to an adverse economic or medical condition. HUD will assist homeowners in Puerto Rico and the 32 States otherwise not funded by Treasury’s Innovation Fund for Hardest Hit Housing Markets program, based on their relative unemployment measures. Allocated award amounts have been reserved to assist homeowners living in these States.

F - Loan Guarantees/Grants

Only the 32 targeted States and Puerto Rico and residents of these states are eligible to receive assistance under EHLP. States that have been determined by HUD to have substantially similar mortgage relief programs will be awarded funding allocations to administer their programs directly. Guidelines for substantially similar State programs are provided in FR-5454-N-01. Targeted States are as follows: Texas, New York, Pennsylvania, Massachusetts, Washington, Minnesota, Wisconsin, Missouri, Virginia, Colorado, Maryland, Connecticut, Kansas, Arkansas, Iowa, Louisiana, Utah, Oklahoma, Puerto Rico, Idaho, New Hampshire, New Mexico, Maine, West Virginia, Nebraska, Hawaii, Delaware, Montana, Vermont, Alaska, Wyoming, South Dakota, North Dakota and Puerto Rico. HUD will assist eligible residents of targeted States that do not have substantially similar mortgage relief programs by offering them direct loans, if they meet the following program criteria: (1) Delinquency and likelihood of foreclosure- Applicant must be at least three months delinquent on the first lien monthly mortgage payment 30 days previous to the commencement of the program; (2) Income Eligibility Limit- Applicant’s pre-event income must be equal to or less than 120 percent of the Area Median Income (AMI), as determined by HUD and adjusted for family size; (3) Loss of Household Income –The applicant has incurred a substantial reduction in income as a result of involuntary unemployment or underemployment due to adverse economic conditions, or medical conditions, and is financially unable to make full mortgage payments; (4) Resumption of Mortgage Payments-there is a reasonable prospect that the homeowner will be able to make the adjustments necessary for a full resumption of mortgage payments within 2 years; and (5) Principal Residence- the mortgaged property is the principal residence of the mortgagor (applicant). Program applicants will be assessed to determine if they meet this eligibility criteria.

Individuals residing in targeted States (list provided above) and Puerto Rico that have delinquent mortgages as a result of involuntary unemployment or underemployment due to an adverse economic or medical condition. Applicants/borrowers are the direct beneficiaries when they meet all eligibility criteria.