It’s Not Just HAMP Anymore
Another great program that clients often use when facing foreclosure in the Emergency Homeowners' Loan Program (EHLP). On another note, another awful name for a program if you want people to remember it. Anyway, this program is great and particularly for real estate agents struggling to make their payments.
Why you ask? Well the reason is that its target population is defined as:
homeowners who have experienced a substantial loss of income (a reduction of at least 15%) due to unemployment or underemployment caused by adverse economic conditions or medical condition.
Now think about, who in the real estate business has not lost substantial income of at least 15% because of adverse economic conditions? I can’t think of anyone.
So what’s the benefit?
The program provides a zero interest, forgivable bridge loan in order to pay certain arrearages to bring them current, as well as ongoing monthly assistance to help them to make their monthly first lien mortgage payments (including payments of principal, interest, taxes, and insurances). Assistance is limited to a maximum duration of 24 months, or up to a maximum loan amount of $50,000 in mortgage payment assistance, whichever occurs first.
How does it work?
the assisted homeowner's contribution to the monthly payment on their first mortgage will be set at 31 percent of their monthly income at the time of application, but in no instance will it be less than $150 per month. EHLP funds will be used to pay for the remaining balance.
What’s the catch?
In NY, mortgagors’ 2009 tax return cannot have a combined annual income of more than 124,300.00 & their back-end DTI must be less than 55%. Also, this must be concerning your primary residence and you must be at least 3 months delinquent on your mortgage and in imminent danger of foreclosure.
To learn more, click here.
