Unemployed? Get a Federal Loan to Pay Your Mortgage
October 13, 2010
Tips & Trends
From Rory S. Coakley on some of the latest real estate news and happenings.
NEW YORK (CNNMoney.com) – Unemployed and can’t pay your mortgage?
You can soon apply for a no-interest government loan for up to $50,000 to pay your mortgage and cover your arrears. The loan, which can offer assistance for up to two years, will be forgiven if the homeowner stays in the house for five years.
Troubled borrowers will be able to apply for the Emergency Homeowners Loan Program by the end of the year. They must be at least three months behind in their payments, but have a reasonable likelihood of being able to resume payments within two years. And they must have suffered at least a 15% drop in income, but have been able to afford their mortgage before their income loss.
Also, the property must be their principle residence and they cannot own a second home. And they must live in Puerto Rico or one of the 32 states not receiving federal assistance through the Hardest Hit Fund, which gave 18 states more than $4 billion to come up with programs to help the unemployed and underwater.
The emergency loan program is built on a similar initiative in Pennsylvania, which was created in 1983. That effort, which is funded by the state, provides loans of up to $60,000 for up to three years. It has distributed $470 million on behalf of more than 44,000 homeowners since inception and boasted an 80% success rate in preventing foreclosure.
The federal program, however, is relatively small. Congress gave the Housing Department $1 billion to spend, meaning it will help at least 20,000 people. But that’s just a small fraction of those who need assistance.
If you would like to suggest a topic for comment in one of our future emailers, please let me know. You can always reach me at email@example.com or by phone 301-340-8700. I look forward to hearing from you!
Rory S. Coakley
Coakley Realty, Inc.
20 Courthouse Square, Suite 107
Rockville, MD 20850
FIND THE PROPERTY YOU NEED.PROPERTY SEARCH
CONTACT US TODAY
Featured Real Estate Listings
Under ContractFlex (Condo)100 Executive Drive,
PRICE REDUCED!!! Reliable investment property, fully leased. Excellent location right off 606, adjacent to Dulles Airport. This flex/office condo is Unit #2, and is divided into two units, each just under 5,000 SF. The First floor is built out as office/warehouse, and the Second floor is office.VIEW LISTING
Residential 20700 Ashburn Station Pl,
Ashburn, VA 20147
Beautifully renovated and meticulously maintained, this fabulous brick colonial is located in one of historic Ashburn's most desirable neighborhoods and sought-after school pyramids - Cedar Lane/Trailside/Stone Bridge! Gracefully sited on a premium corner lot (nearly half an acre), this property showcases all the distinctive details you are looking for.VIEW LISTING