Congresswoman Johnson announces that the U.S. Department of Housing and Urban Development (HUD) in conjunction with NeighborWorks America has launched the Emergency Homeowners’ Loan Program (EHLP) to help homeowners who are at risk of foreclosure in Texas.
The Emergency Homeowners’ Loan Program (EHLP) can provide eligible homeowners with a 0% interest, forgivable loan that pays past-due mortgage payments (principal, interest, taxes, insurance, attorney fees), as well as a portion of the homeowner’s mortgage payment for up to 24 consecutive months, or up to $50,000, whichever comes first, and provided that certain eligibility requirements are maintained.
“Curtailing the number of foreclosures nationally is essential to getting our economy back on track. The Emergency Homeowners’ Loan Program will help homeowners, who have fallen on hard economic times, stay in their homes,” said Congresswoman Johnson. “This assistance is not only economically beneficial, but morally important. We cannot simply sit back and watch millions of American families lose their homes. I commend our former Democratic-leadership for authorizing this program last year, and thank President Obama for his continued support of economically struggling families.”
The EHLP program will pay a portion of an approved applicant’s monthly mortgage including missed mortgage payments or past due charges including principal, interest, taxes, insurances, and attorney fees. Nationally, EHLP is expected to aid up to 30,000 distressed borrowers, with an average loan of approximately $35,000.
Congresswoman Johnson voted in favor of the Dodd-Frank Wall Street Reform and Consumer Protection Act to implement the Emergency Homeowners’ Loan Program (EHLP). The program will assist homeowners who have experienced a reduction in income and are at risk of foreclosure due to involuntary unemployment and underemployment due to economic conditions or a medical condition. HUD has allocated $135,418,959 to fund this emergency loan program in Texas.
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