The Department of Housing and Urban Development (HUD) has sponsored a $1 billion financial aid program designed to provide relief to those facing foreclosure on their homes. The Emergency Homeowners' Loan Program was expected to help nearly 30,000 homeowners with federal funds across 32 states and Puerto Rico, but with a deadline of September 30 fast approaching the program has fallen short.
A $50,000 no interest loan was to be given to each qualifying applicant which would then be forgiven over time if homeowners are able to stay in their homes for five years. A qualifying applicant needed to provide documentation of “at least a 15% hit to income due to the economic crisis or a medical condition and be at least 90 days late on their mortgage on June 1.”
Program originators initially thought there would be an abundance of qualified applicants and a lottery would be necessary to disperse the $1 billion in funds to nearly 30,000 homeowners. Quite the opposite; Brian Sullivan, HUD spokesman, stated Tuesday that The Department of Housing and Urban Development is currently “working feverishly” with state and local housing groups to feed through existing applicants before Fridays deadline. Mr Sullivan goes on to admit the agency sees it will not acheive the highly ambitious goal.