Homeowners Emergency Mortgage Assistance Program

The current housing slump, combined with the recession and high unemployment, has resulted in the inability of many Americans to pay their mortgages. The federal government may step in with a program to provide mortgage relief. The U.S. House of Representatives’ Financial Services Committee is now evaluating a bill that, if approved, would become the Homeowners Emergency Mortgage Assistance Program. The project is similar to one that has been in place in Pennsylvania. Under this proposed legislation, homeowners experiencing financial hardships would be provided with mortgage relief. Those homeowners, during the term of receiving assistance, would be protected from any legal actions filed by banks or lending agencies. To qualify for the Homeowners Emergency Mortgage Assistance Program as currently proposed, you must fulfill these criteria:

Your lender has sent you a letter stating intent to initiate foreclosure on your home. You have not made at least two months’ worth of your mortgage payments subsequent to applying any partial payments that have been accepted but not yet released into your mortgage account.

You are experiencing financial hardship that is beyond your ability to control it. As a result, you are not able to prevent delinquency on your mortgage. Additionally, you are unable to make payments on it before the end of the 60-day period that began when the foreclosure-intent letter was sent by your lender. It is feasible that you will be able to resume in-full payments of your mortgage within 36 months of the date your mortgage assistance begins. Also, you will be expected to pay off the mortgage by the originally scheduled date, or at a time determined by your lender.

The property for which you need assistance must be your principal residence. You cannot be the holder of another mortgaged property. You must apply to HUD for inclusion in the assistance program. You must not have been late for more than 60 days on a mortgage payment during the last two years before applying for assistance. You may be able to qualify for an exception to this rule if you can demonstrate that the financial distress you experienced was out of your control.