By: Trisha Ocona Francis
While tens of thousands of Americans are losing their homes to foreclosure every day and the unemployment rate still remains high, many middle-class American homeowners have asked the question, “Where is my bailout?” Well, our voices have not fallen on deaf ears. Thousands of homeowners will finally have access to the miracle aid they have been seeking.
One-billion dollars has been awarded to the U.S. Department of Housing and Urban Development (HUD) through the Dodd-Frank Wall Street Protection Act for the Emergency Homeowner’s Loan Program (EHLP). Through this program, eligible homeowners can receive assistance with both their delinquent and future mortgage payments for up to 24 consecutive months or up to $50,000. This should give the granted homeowners enough time and financial assistance to get back on their feet and avoid losing their homes. This homeowners’ loan will be granted at 0% interest and be forgivable, which means the balance will be automatically reduced by 20% every year for five years until the balance is clear.