The Obama Administration has kicked off a relief program that is intended to help the unemployed keep their homes.
The Emergency Homeowners’ Loan Program was developed to offer the unemployed loans in order to avoid foreclosure. The program received $1 billion in funding to help over 30,000 homeowners. Under the program, a person can take out an interest free loan up to $50,000 to meet their mortgage payments. Those needing assistance will have to apply by July 22. Loans must be approved by September 30th, the date that funding will no longer be available.
HUD said it approved 27 states, including Puerto Rico, for the program. The state of Texas received to most funding at $135 million, followed by New York receiving $112 million. Some states like California, Michigan and Nevada have developed similar programs for residents in the state, and aren’t participating in the federal program. Homeowners who can’t take advantage of the relief program can contact a foreclosure lawyer, who will work to keep them in their homes.
The intention was to launch the program last year, but was hindered by administrative delays. Republicans tried to block the bill, but have been unsuccessful in their efforts.
The foreclosure crisis, which has been compounded by the high unemployment rate, has adversely affected millions of homeowners. Foreclosure lawyers have helped many troubled homeowners avoid foreclosure through loan modifications. There are a large number of people who have faced wrongful foreclosure because of bank errors. No matter what reason causes a homeowner to enter foreclosure, a foreclosure lawyer can make it possible for them to keep their houses.