Emergency Homeowners' Loan Program in Arkansas

The U.S. Dept. of Housing and Urban Development (HUD) in conjunction with NeighborWorks® America announced the launch of the Emergency Homeowners’ Loan Program (EHLP) yesterday, to help homeowners who are at risk of foreclosure in Arkansas.

Of the $1 billion that Congress provided to HUD to implement EHLP in 27 states and Puerto Rico, HUD allocated $17,736,991 to fund this emergency loan program in Arkansas. The program will assist homeowners who have experienced a reduction in income and are at risk of foreclosure due to involuntary unemployment or underemployment, due to economic conditions or a medical condition.

Designed to help families keep their homes while looking for work or recovering from illness, the emergency loan program is administered by HUD through NeighborWorks® America, and not by the City of Hot Springs. Homeowners interested in finding out if they qualify for the program can find contact information for participating agencies, the Pre-Applicant Screening Worksheet, eligibility requirements and more at www.FindEHLP.org or by calling toll free at 855-FIND-EHLP (346-3345). The deadline for submitting a pre-application worksheet is July 22, 2011.

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, provided that certain eligibility requirements are maintained.

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. EHLP is expected to aid up to 30,000 distressed borrowers, with an average loan of approximately $35,000.