Act Fast: Obama Launches Foreclosure Relief Initiative For Unemployed

• June 21st 2011

by Mark Wellborn

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On Monday, the Obama administration launched the Emergency Homeowners’ Loan Program, the goal of which is to help the unemployed pay their mortgages by providing them with zero-interest loans. Under program guidelines, eligible homeowners can qualify for an interest free loan which pays a portion of their monthly mortgage for up to two years or up to $50,000, whichever comes first.

However, in order to take advantage of this program, homeowners must apply by July 22. Also, borrowers must be approved by Sept. 30 because as of that date, the government loses its authority to issue the new loans.

According to The Wall Street Journal, the program is similar to an effective initiative from the 1980s aimed at helping those facing foreclosure:

The program was inserted into the Dodd-Frank bill by Democrats who modeled the program after one created in Pennsylvania in the 1980s to assist unemployed steel and coal workers. It has won plaudits for being more effective than other foreclosure-prevention programs.

In addition to DC, the program is available to unemployed homeowners 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 and Puerto Rico. Five states operating similar programs are administering Emergency Homeowners’ Loan Program help directly: Connecticut, Delaware, Idaho, Maryland, and Pennsylvania

For more information, visit www.FindEHLP.org.

This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/act_fast_obama_launches_foreclosure_relief_initiative/3695.