Home Loan Help for Jobless in Jeopardy

unemployment line Thousands of potentially eligible homeowners may be left out of a $1 billion Department of Housing and Urban Development program that provides interest-free loans to the unemployed because of documentation and timing problems.

The Dodd-Frank Act required HUD to develop the Emergency Homeowners Loan Program. Unemployed borrowers in 27 states could apply through nonprofit counseling centers for up to $50,000 in mortgage assistance so long as they contribute $150 per month.


HUD initially targeted 30,000 borrowers with the program. The deadline for all but five states already running similar programs expired Sept. 15 after two extensions. The deadline expires Sept. 30 for the others: Pennsylvania, Connecticut, Delaware, Idaho and Maryland.

A HUD spokesman said that 75 percent of the rejections so far were made because borrowers did not meet the criteria required by the program's statute.

"The main problems we are having are based to the statutory requirements of the program and the statutory time limits," the spokesman said. "We are supporting efforts by several senators to extend the program to allow us to reach as many homeowners as possible."

Sen. Robert Casey (D-Pa.) introduced a bill Friday that would extend the program out further. The bill was co-sponsored by senators Charles Schumer (D-N.Y.) and Jeanne Shaheen (D-N.H.).

The HUD spokesman said if there were more time, more applications could be re-opened.

Read the full story at HousingWire.

Also see:
Foreclosed Homeowner 'Booby-Traps' Home

Realtors' Latest Challenge: A Surge of Squatters
Worst Foreclosed Home Vandalism Ever?


More on AOL Real Estate:
Find out how to
calculate mortgage payments.
Find
homes for sale in your area.
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foreclosures in your area.



Also see:
Foreclosed Homeowner 'Booby-Traps' Home
Homeowners Beware: Forensic Loan Audit Scam
Foreclosure Rescue Scammers Busier -- and Trickier -- Than Ever


More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find
homes for sale in your area.
Find
foreclosures in your area.
Find rentals in your area.

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