But the pre-screening deadline for applicants is July 22, so interested homeowners must move fast. Click here to get started.
Coming out of the budget of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the $1 billion allotted for the Emergency Homeowners' Loan Program is expected to help about 30,000 of them, reports The Washington Post.
But qualifying for the relief program is not easy. Among other conditions, applicants must be unemployed or underemployed, 90 days behind on mortgage payments and have received a foreclosure notice.
Homeowners who qualify for the program -- which is offered only in 32 states -- receive a loan enabling them to meet up to two years or $50,000 worth of mortgage payments. The loan requires no payments for five years, as long as borrowers contribute 31 percent of their income or at least $150 to their mortgage payments. After that, the magic starts: The government reduces the loan balance by 20 percent each year until, poof -- no more loan.
MSN Money offers a more thorough breakdown of the program.
For more on mortgages and related topics see these AOL Real Estate guides:
- Stop Foreclosure Scammers Before They Scam You
- How to Get a Low Mortgage Rate
- Mortgage Jargon in Simple Terms
- Foreclosure Help: What a Housing Counselor Can Do
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.