Monday, July 11, 2011

Help for Kansas homeowners worried about foreclosure is on the way from the Department of Housing and Urban Development.

The Emergency Homeowners Loan Program, or EHLP, is meant to give those facing foreclosure a way to stay in their homes. The loan subsidy program is for those who have experienced job loss, reduction in work, or who have had medical problems leading to mortgage delinquency and foreclosure danger.

The U.S. Department of Housing and Urban Development anticipates a high amount of demand for the program. In order to ensure that program funds are made available in a fair and impartial manner, homeowners interested in applying must first complete a Pre-Applicant Screening Worksheet.

EHLP is designed to provide mortgage payment relief to eligible homeowners experiencing a decrease in income of at least 15% directly resulting from involuntary unemployment or underemployment due to adverse economic conditions and/or a medical emergency.

Other EHLP eligibility requirements include: Applicant must be at least three months delinquent on mortgage payments, as signified by notification by his or her first-lien lender/servicer.

Principal Residence: Applicant must reside in the mortgaged property as his or her principal residence. The mortgaged property must also be a single family residence (1 to 4 unit structure, manufactured housing, cooperative, or condominium unit).

Likelihood of Foreclosure: Applicant must have received notification of his or her lender's/servicer's intention to foreclose on his or her mortgage as a result of the delinquency, and must also certify to the likelihood that their mortgage will be foreclosed upon.

Income Limit: Applicant has a total household income equal to, or less than, the greater of either $75,000 or 120 percent of that in the area.

Median Income (AMI): AMI for a household size of four (4) persons previous to loss of income resulting from involuntary unemployment, underemployment, and/or medical emergency/serious injury. Income includes wages, salary, and self-employed earnings and income.

Mortgage Cost Burden: Under his or her current, reduced income, the applicant's monthly mortgage payment is greater than 31% of their monthly income.

Ability to Resume Payment: Applicant must have a reasonable likelihood of being able to afford and resume repayment of monthly mortgage and all other household debt obligations when re-employed, in accordance with program qualification guidelines.

Jeff Witherspoon, executive director of Consumer Credit Counseling Service, Inc. a non-profit agency in Wichita, encouraged eligible homeowners to apply as quickly as possible as "the window for application is short and the program has funds to help only about 400" homeowners in the state. You can find more information on how you can get help by clicking here.