Helping Unemployed Homeowners
homeowners who are struggling to pay their mortgage may be eligible to
receive financial assistance through two new federal
foreclosure-prevention programs facilitated by the U.S. Treasury
Department and the U.S. Department of Housing and Urban Development
(HUD). The Treasury Department has made $2 billion of additional
assistance available through the Housing Finance Agency’s (HFA) Hardest
Hit Fund to help homeowners who are struggling to make their mortgage
payments due to unemployment.
announced a $1 billion Emergency Homeowners Loan Program to assist
homeowners who are at risk of foreclosure and have experienced
reduced income due to job loss, underemployment or a medical condition
for up to 24 months.
To qualify for
this program, borrowers must meet the following criteria:
are at least three months delinquent on their mortgage payments and have
a reasonable likelihood of being able to resume repayment within two
mortgage must be for the borrower’s principal residence.
may not own a second home.
must demonstrate a good payment record prior to the event that produced
the loss of income.
and the District of Columbia which had an unemployment rate at or above
the national average over the past 12 months are eligible to receive
assistance under the Hardest Hit Fund. States will use the funds to
develop programs that provide temporary mortgage assistance to eligible
homeowners while they continue to seek employment or get job
training. Eligible states include: Alabama, California, Florida,
Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Nevada, New
Jersey, North Carolina, Ohio, Oregon, Rhode Island, South Carolina ,
Tennessee and Washington, D.C.
For more information about these programs, visit