Governor O’Malley recently announced the establishment of a $40 million program to assist homeowners in addressing back mortgage payments. Funded through the U.S. Department of Housing and Urban Development, the Emergency Homeowner Loan Program provides assistance to homeowners facing foreclosures due to job loss in the payment of up to 12 months of overdue debt, including delinquent taxes and insurance, and up to 24 months going forward, with a maximum total of $50,000. O’Malley stated:
“Even as we move beyond the fallout of the subprime mortgage and predatory lending crisis, there are still too many families in our State struggling to make ends meet.Thanks to our federal partners, this program will strengthen an important safety net for unemployed homeowners and protect the investment they made in the American dream.”
Eligible homeowners include those who:
- Are experiencing a loss of employment income because of the economy or a medical condition. Homeowner(s) must have a current income that is at least 15% less than it was prior to the loss of employment.
- Are 3-12 months delinquent on their mortgage payments and pending foreclosure. It must be the first mortgage on the principal residence of the homeowner.
- Have a total household income equal to, or less than, 120% of the Area Median Income (AMI), including wages, unemployment benefits, and other income. (See the Pre-Application Eligibility Checklist on www.mdhope.org for AMI chart.)
- Have a reasonable likelihood (based on industry underwriting standards) of being able to resume mortgage payments within 2 years, when full employment has been regained.
Additional information on this program can be found at the HOPE website at www.mdhope.org .