Foreclosure Relief Effort Finally Kicks Off.
By Alan Zibel
The Obama administration is finally launching a long-awaited $1 billion program designed to provide the unemployed with loans to help them avoid foreclosure.
But there’s a catch: Homeowners will have only a month to apply.
The new Emergency Homeowners’ Loan Program, created in the Dodd-Frank financial overhaul last year, aims to help unemployed homeowners with their mortgage payments by providing zero-interest loans of up to $50,000. The program is expected to aid 30,000 borrowers, and the loans can be forgiven over five years.
On Monday, the Department of Housing and Urban Development said it approved 27 states and Puerto Rico for the program. That adds to five states that already had similar programs in place and were approved for funding in April. Texas is the largest recipient of the government funding, at $135 million, followed by New York at $112 million. Homeowners will need to apply by July 22 to be eligible for the program.
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