Distressed borrowers have been granted a few extra days to participate in a federal program that could provide them with as much as $50,000 towards mortgage payments.
The program is the Emergency Homeowners’ Loan Program. It was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act for delinquent borrowers who didn’t benefit from the Housing Finance Agency Innovation Fund.
On July 4, NeighborWorks America Chief Executive Officer Eileen M. Fitzgerald said in a joint announcement with the Department of Housing and Urban Development that the deadline for the program was July 22 — though that same announcement stated that borrowers had until July 27 to apply.
In another joint announcement from HUD and NeighborWorks on Friday, the two organizations said that “the Emergency Homeowners’ Loan Program has been extended to Wednesday, July 27.”
Eligible borrowers experienced a reduction in income and are at risk of foreclosure because of involuntary unemployment or underemployment as a result of economic conditions or a medical condition.
Qualified borrowers can receive an interest-free, deferred-payment bridge loan that pays up to $50,000 toward a portion of their mortgage payments for up to two years.
Borrowers in 27 states will benefit from the $1 billion program.
$1 Billion in Distressed Borrower Funds
Delinquent borrowers who didn’t benefit from a more than $7 billion fund established for hard-hit states have less than four weeks to take advantage another $1 billion program.