The Wall Street Journal
By: Emily Glazer
June 26, 2011
In danger of foreclosure? You have until July 22 to apply for the federal government's Emergency Homeowners' Loan Program.
Eligible homeowners can qualify for an interest-free loan to pay a portion of their monthly mortgage for up to two years, or up to $50,000, whichever comes first. The money also can be used to pay missed mortgage payments and past-due charges including principal, interest, taxes, insurance and attorney's fees.
Requirements include household income no greater than $75,000 or 120% of the area median income. Homeowners also must be at least three months delinquent on mortgage payments and have received notification of their lender/servicer's intention to foreclose.
Loans will be given out to as many as 30,000 borrowers, with an average loan amount of about $35,000, according to the Department of Housing and Urban Development.
The program is available in 27 states, including Massachusetts, New York and Texas. In most states, you must apply through a participating credit-counseling agency, such as CredAbility or Money Management International. Connecticut, Delaware, Idaho, Maryland and Pennsylvania operate and administer the program directly.
Go to FindEHLP.org or call 855-346-3345 for more information.
Write to Emily Glazer at firstname.lastname@example.org