The Obama Administration today announced additional support to help homeowners struggling with unemployment through two targeted foreclosure-prevention programs.
Through the existing Housing Finance Agency (HFA) Innovation Fund for the Hardest Hit Housing Markets (Hardest Hit Fund), the U.S. Department of the Treasury will make $2 billion of additional assistance available for HFA programs for homeowners struggling to make their mortgage payments due to unemployment. Additionally, the U.S. Department of Housing and Urban Development (HUD) will soon launch a complementary $1 billion Emergency Homeowners Loan Program to provide assistance for up to 24 months to homeowners who are at risk of foreclosure and have experienced a substantial reduction in income due to involuntary unemployment, underemployment, or a medical condition.
Under the additional assistance announced today, states eligible to receive support have all experienced an unemployment rate at or above the national average over the past 12 months, Illinois is on that list and will receive $166,352,726.
The emergency loan program by HUD will work through a variety of state and non-profit entities and will offer a declining balance, deferred payment “bridge loan” (zero %) for up to $50,000 to assist eligible borrowers with payments on their mortgage principal, interest, mortgage insurance, taxes and insurance for up to 24 months.