The Department of Housing and Urban Development has extended the date for emergency foreclosure relief by three days. The original deadline was Friday, July 22, but now homeowners have until, today, Wednesday, July 27th to apply for the bridging loan.
The Emergency Homeowners Loan Program is offered in 27 different states. The program allows people who are in danger of losing their homes, because of illness or unemployment, to apply for an interest free loan to help them meet their monthly mortgage payments over a two year period or up to $50,000.
The program approved by Congress last summer allocated $1 billion to help distressed mortgage holders, but the program has had lackluster participation, either because people aren’t aware of the program, or they are skeptical.
For those who don’t qualify for the emergency funds, they can obtain the advice of a foreclosure attorney who can negotiate with the banks for a mortgage modification or contest their decision.
Unemployment is a driving force in the foreclosure crisis. The unemployment rate has been holding steady, with slight variations, and many find that they are out of work for several months to a couple of years. Unemployment benefits pay a fraction of the recipient’s original salary. The individuals who are behind on their mortgage payments may have no other recourse than to hire a foreclosure lawyer.
Losing a home is a tough situation to be in especially if it is something that could not have been prevented. Besides unemployment, some of people are receiving seizure notices because of the negligent practices of the lenders; in these instances a foreclosure attorney can prevent foreclosure.
