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HUD and NeighborWorks America launches the Emergency Homeowners Loan Program to assist homeowners at risk of foreclosure

HUD and NeighborWorks America launches the Emergency Homeowners Loan Program to assist homeowners at risk of foreclosure

By Shernita Bethea
Housing and Human Services Manager

The U.S. Department of Housing and Urban Development (HUD) in conjunction with NeighborWorks® America recently announced the launch of the Emergency Homeowners’ Loan Program (EHLP), to help homeowners who are at risk of foreclosure.  Under EHLP guidelines eligible homeowners can qualify for an interest free loan which pays a portion of their monthly mortgage for up to two years, or up to $50, whichever comes first.

The Emergency Homeowners Loan Program will offer a zero interest, forgivable bridge loan to homeowners who have experienced a substantial loss of income (a reduction of at least 15%) due to unemployment or underemployment caused by adverse economic conditions or medical condition. Approved homeowners are eligible to receive one-time EHLP assistance to pay certain arrearages to bring them current, as well as ongoing monthly assistance to help them to make their monthly first lien mortgage payments (including payments of principal, interest, taxes, and insurances). Assistance is limited to a maximum duration of 24 months, or up to a maximum loan amount of $50 in mortgage payment assistance, whichever occurs first. The EHLP loan is secured by a junior lien against the approved homeowner's principal residence and is forgivable over a 5-year principal reduction period.

Virginia was one of twenty-seven states to receive an allocation. The program is being administered through housing counseling agencies funded through the Emergency Homeowners’ Loan Program (EHLP).  The following four local agencies are providing counseling in the Hampton Roads region for this program.

Catholic Charities of Eastern Virginia, Inc.
5361-A Virginia Beach Blvd
Virginia Beach, VA 23462
Phone: 757-484-0703
Web: www.cceva.org

Center for Child and Family Services
2021 Cunningham Drive #400
Hampton, VA 23666
Phone: 757-826-2227
Web: www.kidsandfamilies.com

Urban League of Hampton Roads, Inc.
2021 Cunningham Drive #400
Portsmouth, VA 23707
Phone: 757-627-0864
Web: www.ulhr.org

York County Division of Housing & Neighborhood Revitalization
224 Ballard Street
Yorktown, VA 23690
Phone: 757-890-3885
Web: www.yorkcounty.gov
 
Participating counseling agencies will be accepting the pre-applicant screening forms through Friday July 22nd.  For full program guidelines or to locate other counseling agencies, individuals may visit www.FindEHLP.org.

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