New Federal Program to Help Unemployed or Ill Homeowners Pay Their Mortgage

The Emergency Homeowner Loan Program (EHLP) was recently created by the Congress to help homeowners facing foreclosure.

EHLP funds will be used to help homeowners make mortgage payments plus back payments for up to 24 months if they have had at least a 15% drop in income due to involuntary unemployment or underemployment or a medical emergency or serious injury.  You must be at least 3 months behind on your mortgage to qualify.

The help will be in the form of a no-interest loan which will be forgiven if the homeowner remains in their home for five years.

Pre-applications for EHLP are now being taken by non-profit housing agencies.  To schedule an appointment to apply for EHLP you should call the Save Our Homes Philly Hotline at 215-334-HOME (4663) or call 1-800-342-2397 outside of Philadelphia.

The program will be operated by the Pennsylvania Housing Finance Agency and will end by September 30, 2011.

Philadelphia Unemployment Project, 112 N. Broad St. 11th Floor
Philadelphia, PA 19102 214-557-0822, www.Philaup.org

Facts on Emergency Homeowner Loan Program
Aid Now Available in Pennsylvania

• Funds are finally available for the Emergency Homeowner Loan Program to assist unemployed and ill homeowners facing foreclosure. 

• On July 21, 2010 the Congress enacted a $1 Billion program to assist homeowners to prevent foreclosure- the Emergency Homeowner Loan Program (EHLP). 

• Funds were allocated to the states by a formula and Pennsylvania has been provided with $105.8 million to provide bridge loans to unemployed or injured homeowners.

• EHLP is a program of HUD and took effect October 1, 2010.  The Pennsylvania Housing Finance Agency is handling implementation in Pennsylvania and began taking applications in April.

• The funds must be obligated by September 30, 2011.

• EHLP funds will be used to provide mortgage payment assistance of up to 24 months to homeowners who have had at least a 15% drop in income due to involuntary unemployment or underemployment caused by adverse economic conditions or a medical emergency or serious injury.

• Homeowner’s mortgage payments must be more than 31% of their family income to be eligible.

• Also, homeowners must be at least 3 months behind on their mortgage to qualify.

• The help will be in the form of a no-interest loan which will be forgiven if the homeowner remains in their home for five years. 

• Applications for EHLP are now being taken by non-profit housing agencies.  To schedule an appointment to apply for EHLP Philadelphians should call the Save Our Homes Philly Hotline at 215-334-HOME (4663) or call PHFA at 1-800-342-2397 if you live outside of Philadelphia. 

Prepared by the Foreclosure Crisis Committee of the Philadelphia Unemployment Project 112 N. Broad St. 11th Floor Philadelphia, PA 19102 215-557-0822, www.Philaup.org