More help given to fight US foreclosures

Property Guru – Wed, Jun 22, 2011

The Housing and Urban Development (HUD) Department in the US has launched the Emergency Homeowners Loan Program in 27 states to aid unemployed home owners who are at risk of foreclosure.

The programme aims to help about 30,000 troubled homeowners who meet the requirements set by the government.

Funded by proceeds from the Dodd-Frank financial reform act, the US$1 billion programme will help homeowners who have experienced reduced income due to underemployment, job loss or medical conditions.

Under the programme, home owners will be eligible for an interest-free loan, which pays a part of their monthly loan for up to US$50,000, or up to two years, whichever comes first.

"Through the Emergency Homeowners' Loan Program the Obama Administration is continuing our strong commitment to help keep families in their homes during tough economic times," said Shaun Donovan, Secretary of HUD.

The rescue plan will pay only a part of the homeowner's monthly mortgage, including mortgage payments, principal, taxes, interest, attorney fees and insurance.

The programme will be offered in the following states — Arkansas, Alaska, Colorado, Iowa, Hawaii, Kansas, Maine, Louisiana, Massachusetts, Missouri, Montana, Minnesota, Nebraska, New Mexico, New Hampshire, New York, Oklahoma, North Dakota, South Dakota, Utah, Texas, Vermont, Washington, West Virginia, Virginia, Wyoming, Wisconsin and Puerto Rico.

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