Good news for homeowners struggling with mortgage costs! The US federal government has extended the deadline for emergency assistance requests to September 15, covering homeowners in 27 states.
Originally, the Department of Housing and Urban Development set the deadline for the Emergency Homeowners Loan Program at July 27. This program, part of the Durbin-Dodd amendment, offers bridge loans to help homeowners manage mortgage expenses. To qualify, applicants must be facing issues such as job loss, medical emergencies, significant credit card debt, and be at least three months behind on their mortgage payments.
Eligible homeowners can receive up to $50,000 in financial assistance over two years. This loan is interest-free, and it doesn’t have to be repaid if the homeowner keeps up with mortgage payments for the next five years.
The initial July deadline aimed to make funds available after September 30. The deadline has now been extended twice to help more people. This $1 billion program is expected to assist 20,000 to 30,000 distressed homeowners. A Housing Department spokesman, Brian Sullivan, noted that around 84,000 initial applications were received, with about 40,000 passing the first round of eligibility screening.
For the second round of approval, homeowners must provide detailed accounts of their financial circumstances, verified through bank statements or employment termination letters.
This loan program is especially useful for homeowners in states not eligible for the $7.6 billion fund aimed at the 18 states hardest hit by the housing crisis. Homeowners in states like Alaska, Arkansas, Colorado, Hawaii, Iowa, Kansas, Louisiana, Maine, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Mexico, New York, North Dakota, Oklahoma, South Dakota, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming can benefit from this program.
In addition, Delaware, Idaho, Maryland, Connecticut, and Pennsylvania have also introduced programs to help homeowners who are behind on their mortgage payments. These five states received 11,000 applications and approved 3,000 by the end of August.