Wednesday, August 31, 2011

HUD Extends Application Period for EHLP

On Tuesday, the US Department of Housing and Urban Development (HUD) and NeighborWorks America announced that they have reopened the application process for the Emergency Homeowners’ Loan Program (EHLP).

EHLP offers an ‘emergency bridge loan’ (mortgage payment assistance) of up to $50,000 for qualified homeowners who have experienced an involuntary reduction in income (due to medical or employment issues) and are at risk of foreclosure.

Several thousand EHLP pre-applications were received during the original enrollment period in July.  The majority of those did not meet the strict guidelines established by HUD and the Dodd-Frank Act.   Because of the high disqualification rate, HUD anticipates that there will be funding available to reach additional struggling homeowners, and has decided give additional homeowners the opportunity to apply for these funds during an “Open Enrollment” period.

However, homeowners need to understand two key points about this new open enrollment period:

  1. The strict qualifying guidelines still apply
  2. Open enrollment requires a COMPLETE application and supporting documentation

The strict guidelines include (but certainly aren’t limited to):

  • 90 days late as of June 1, 2011 and homeowners must still be at least 90 days late 
  • Must have experienced a documentable reduction of 15% in their income due to the economy or a medical condition (involuntary layoff or wage reduction, for example)
  • No sheriff’s sale scheduled within the next 30 days 

EHLP funds are provided to qualified homeowners on a first-come, first-served basis and it is critical homeowners provide all required application documents as quickly as possible, or they may risk losing the opportunity to apply for assistance.  In Minnesota homeowners should submit all documents before 4:00pm on Thursday, September 15th and understand that as the September 15th deadline nears, there may not be enough time to review application documents.  Submission of documentation does NOT guarantee that an application will be reviewed or accepted by HUD.

What should interested homeowners do?
Homeowners that are interested in applying for EHLP during the open enrollment period should contact their local Housing Counseling agency that is participating in open enrollment to see if they meet the strict program requirements and for information on how to apply.

  • Hennepin County residents, call Community Action Partnership of Suburban Hennepin at (952) 933-1993.
  • Carver, Scott & Washington County residents, call Carver County CDA at (952) 658-7878.
  • Dakota County Residents, Call Dakota County CDA at (651) 675-4555.
  • Residents of ALL OTHER MINNESOTA Counties, call LSS Financial Counseling at (800) 777-7419.

Additional information about EHLP and the strict eligibility requirements are also available on the EHLP Minnesota website:  

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