HUD Announces EHLP Program to Assist Distressed Borrowers

Last week, the U.S. Department of Housing and Urban Development (HUD), in conjunction with NeighborWorks® America, launched the Emergency Homeowners’ Loan Program (EHLP) to help homeowners who are at risk of foreclosure in 27 states across the country and Puerto Rico.

Under HUD’s EHLP guidelines, eligible homeowners can qualify for an interest free loan which pays a portion of their monthly mortgage for up to two years, or up to $50,000, whichever comes first.

The EHLP loan is secured by a junior lien against the approved homeowner’s principal residence, and is forgivable over a 5-year principal reduction period, as long as the assisted borrower remains current in their monthly mortgage payments and meets other program requirements.

“It’s important to remember that applicants must meet strict criteria for this program,” said Kelly Gill-Gordon, VHDA Homeownership Education Program Manager. “These criteria include being at risk of foreclosure due to involuntary unemployment or underemployment, a reduction in income, and being three months behind on your mortgage. Local counseling agencies across Virginia will be administering this program, and qualifying applicants will be placed in a lottery for available funds. All program details can be found at the program’s website,”

HUD’s EHLP funds will pay a portion of an approved applicant’s monthly mortgage including missed mortgage payments or past due charges including principal, interest, taxes and insurance. The HUD program is expected to aid up to 30,000 distressed borrowers nationwide, and approximately 1,200 in Virginia.

The program is now available and the deadline is July 22, 2011. Homeowners are encouraged to submit their information now to find out if they qualify for this new mortgage assistance program, and learn more about other options available to them.

Congress provided $1 billion dollars to HUD, as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, to implement the program. HUD’s EHLP funding is a complement to the Hardest Hit Fund which makes available $7.6 billion to 18 states and the District of Columbia that were hardest hit by the housing crisis.

Contact information for participating agencies, the Pre-Applicant Screening Worksheet and more information on HUD’s EHLP assistance and its eligibility requirements can be found at or by calling toll free at 855-FIND-EHLP (346-3345).

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