While in Congress, legislators take careful aim at relief programs that they believe are not getting the job done, the department of Housing and Urban Development (HUD) is still actively handing out funds from said departments. Yesterday, Pennsylvania governor Tom Corbett announced that his state would be the recipient of $105 million in aid from the Emergency Homeowners’ Loan Program (EHLP)[1]. EHLP funds are intended to help homeowners who have involuntarily become unemployed or underemployed or who are in danger of losing their homes due to medical reasons.
The funds will be provided via a zero-interest bridge loan for up to $50,000. Pennsylvania’s Housing Finance Agency (PHFA) will administer the funds. In order to qualify for this emergency aid, you must be at least three months delinquent on your mortgage, have proof that your income is now at least 15 percent below “pre-event” income (before you became unemployed or underemployed), and have a reasonable chance of resuming normal mortgage payments within 24 months[2].
Corbett believes that this federal aid will not only give families time to get back on their feet, but could also stabilize communities because housing markets will remain in more stable condition[3]. Do you think that this program is a good thing for Pennsylvania?
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[1] http://nationalmortgageprofessional.com/news24489/pennsylvania-receive-105-million-assist-homeowners-facing-foreclosure
[2] http://www.phfa.org/consumers/homeowners/ehlp.aspx
[3] http://www.abc27.com/story/14379734/state-gets-millions-to-help-homeowners-in-danger-of-foreclosure?redirected=true
