Home owners who are eligible for the program will be able to qualify for up to $50,000 in interest-free loans for up to two years. Home owners who have had a drop in income of at least 15 percent from involuntary unemployment or underemployment due to economic conditions or a medical emergency are eligible for the program.
“Through the Emergency Homeowners’ Loan Program the Obama Administration is continuing our strong commitment to help keep families in their homes during tough economic times,” said HUD Secretary Shaun Donovan. “Working with our community partners across the nation through NeighborWorks America, we are pleased to launch this program today in 27 states and Puerto Rico to help families keep their homes while looking for work or recovering from illness.”
The program was created under the Dodd-Frank Act, and HUD will provide $1 billion to implement it. Eligible homeowners can qualify for up to $50,000 in interest-free loans. The money will assist with mortgage payments for up to two years.
Source: “HUD: Help on the Way for Unemployed Home Owners,” AOL Real Estate (June 20, 2011)