The U.S. Department of Housing and Urban Development (HUD), in conjunction with NeighborWorks America, has launched the Emergency Homeowners' Loan Program (EHLP), which is designed to help homeowners who are at risk of foreclosure in 27 states across the country and Puerto Rico.
According to HUD, the program will assist homeowners who have experienced a reduction in income and are at risk of foreclosure due to involuntary unemployment, underemployment, economic conditions or a medical condition. Eligible homeowners can qualify for an interest-free loan that pays a portion of their monthly mortgage for up to two years, or up to $50,000 – whichever comes first.
EHLP was implemented as part of the Dodd-Frank Act and will operate on a $1 billion budget. EHLP is expected to aid up to 30,000 distressed borrowers, with an average loan of approximately $35,000, HUD adds.