Today Last Day to Apply for Emergency Foreclosure Loan Program

Today is the last day for families facing foreclosure to save their homes and avoid further derogatory reporting to credit agencies through a special federal interest-free loan program. 

The Emergency Homeowners' Loan Program, administered by the U.S. Department of Housing and Urban Development (HUD), has allotted Virginia $46.6 million of the $1 billion in federal funds available for the program. 

To qualify, applicants can't have an annual household income of more than $124,200. Individuals are eligible for up to $50,000 in interest-free loans.

The pre-application deadline is today.  There are 13 active foreclosure listings in zip code 20111, which includes Manassas Park, according to the website,foreclosure.com

In Virginia, 1 out of every 887 homes is in foreclosure, said Michelle Jones, senior vice president of counseling at CredAbility, a nonprofit consumer credit counseling agency.

The agency has been selected by HUD to take emergency loan program applications in Virginia and 16 other states, Jones said.

CredAbility has taken about 2,400 applications over the phone and online since the program was announced earlier this month, she said.  

All the allotted money must be spent by Sept. 30, the end of the program fiscal year, according to a CredAbility press release.

"For families who qualify, this program provides money to pay past due and future mortgage payments," Jones said in the release.  "Homeowners will also receive free credit counseling that will help them get their financial lives back on track. Homeowners should act quickly— for many, this program is a new chance to save their homes."

To be eligible for the program, homeowners must meet the following conditions:

• Involuntary unemployment or underemployment caused by adverse economic conditions or a medical emergency or serious injury;
• A minimum 15 percent reduction in income;
• A minimum three months delinquent on mortgage payments and at risk of foreclosure as of June 1, 2011. Homeowners must have a letter from their mortgage company verifying these conditions.
• A reasonable likelihood to resume full monthly mortgage payments by the end of the program’s second year;
• Income must be less than 120 percent AMI (Area Median Income) or $75,000 
  or below;
• Income will be evaluated along with the income of anyone else on the mortgage note. Only the income of the persons on the mortgage note will be used to determine eligibility.

Qualified homeowners will receive a zero percent interest loan that covers the amount of mortgage payments past due on their primary residence. It will also pay 100 percent of the delinquent amount due to cover property taxes, mortgage and hazard insurance premiums, homeowner association fees and foreclosure-related fees. 

Applications must be received by midnight.  Received applications will be reviewed by counseling agencies to determine which homeowners are eligible for the program. All homeowners who qualify will be notified before Oct. 1.

To learn more, visit FindEHLP.org or call 855.FIND.EHLP (346.3345). Or call CredAbility at 800.984.0979.