Unemployed home owners in five states will be able to get some help from the government with zero-interest, forgivable loans that set out to help them avoid foreclosure.
The $1 billion Emergency Homeowners’ Loan Program — an Obama administration program — was established nearly a year ago but has been delayed several months. The House recently voted to end the unemployment program, but the Democrat-led Senate isn’t expected to approve the measure.
The program will provide unemployed home owners zero-interest loans of up to $50,000 so that they’ll be able to continue making mortgage payments. The loans can be forgiven over five years.
The Department of Housing and Urban Development approved the following five states for funding:
▪ Pennsylvania: $106 million
▪ Maryland: $40 million
▪ Connecticut: $33 million
▪ Idaho: $13 million
▪ Delaware: $6 million
Each of those states already have similar programs geared to unemployed home owners.
In 27 other states that don't have a similar program, NeighborWorks America will soon provide federal funding for loans.
Neither program includes hard-hit real estate markets, such as Michigan, California, and Nevada. Those states will receive $7.6 billion in aid for a special fund designated for hard-hit states from the Treasury Department.
Source: “Five States Approved for $1 Billion Foreclosure Prevention Program,” Dow Jones Business News (April 1, 2011)
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