As the nation continues to stumble through the housing crisis, the government is coming up with another program that might be of help to people who are struggling with making their mortgage payments.
It seems that HUD Secretary Shaun Donovan has announced that they are working in conjunction with NeighborWorks America to launch this program in a limited number of states. And those who are lucky enough to live in one of them , might be eligible for a loan up to $50,000 that could be used to pay part of the homeowners mortgage payment.
Here is the article for further information:
HUD Launches $ 1 Billion Homeowner Assistance Program/ Written by Brett Varner
“As the government debates ways to reduce the size of their involvement in the housing finance market, HUD announced the launch of a $1 billion assistance program designed to offer interest free loans to borrowers who are at risk of foreclosure.
The program, called the Emergency Homeowners’ Loan Program (EHLP) has been made available in 27 states and Puerto Rico. It offers interest free loans up to $50,000 to pay a portion of their monthly mortgage payments for up to two years.
“Through the Emergency Homeowners’ Loan Program the Obama Administration is continuing our strong commitment to help keep families in their homes during tough economic times,” said HUD Secretary Shaun Donovan. “Working with our community partners across the nation through NeighborWorks® America, we are pleased to launch this program today in 27 states and Puerto Rico to help families keep their homes while looking for work or recovering from illness.”
HUD expects the programs to help about 30,000 distressed borrowers with an average loan amount of $35,000.
Considering that the majority of homeowners who have their mortgages modified re default within a short period of time, adding additional debt to distressed homeowners, even at an interest free rate, may merely delay the inevitable and lead to significant losses of the $1 billion allocated to the program.”
Obviously this won’t make much of an impact on the overall level of foreclosures but if you are the “one’ that is lucky enough to take advantage of the program, it certainly will make a difference in your life, wouldn’t it?
A recent article by NCOA discusses Pres. Obama’s White House budget and how it will effect the senior community due to proposed cuts of 45% in the Community Service Employment Program.
For many seniors, they are using these extra funds from part-time employment to maintain their ability to survive from month to month and without them will experience severe difficulties in paying for their day to day needs. And on top of this blow, more will come from each state as they look for ways to cut back on spending by eliminating some programs that seniors have come to rely upon.
As much as some seniors don’t want to consider using a Reverse loan to stay in their homes and self-fund their costs of living, they at least have this as an option to increase their cash flow.
Seniors need to get past their fears about the myths concerning the loan program and take advantage of the free HUD counseling that is available as of this post & find out how a Reverse loan can help them.
Once they have done some research from reliable and credible resources, will they be in the position to decide if using one is right for them.
NOCA: Obama Budget Slashes Jobs for Low Income Seniors
“Spending cuts included in the White House Budget released this week ”would drastically slash initiatives that empower older Americans to sustain their health and economic independence,” according to a statement from the National Council on Aging (NCOA).
The organization points to a proposed 45% cut in the Senior Community Service Employment Program, which it says is the only major jobs program targeted toward helping disadvantaged older adults who need to remain in or return to the workforce to avoid financial crisis.
The program serves the extremely low income population, and NCOA says the proposed budget cut would lead to the loss of 55,000 part-time jobs, as well as struggle among thousands within the senior demographic who need to remain employed.
“At a time when Democrats and Republicans are both talking about jobs, it just doesn’t make sense to cut the only jobs program for seniors,” said Jim Firman, president and CEO of NCOA. “The unemployment rate just went down in December as 36,000 new jobs were created and now the Administration wants to give them right back.”
Among other points in the budget aimed toward seniors, NCOA expressed disappointment in response to a proposed cut from the the Low Income Home Energy Assistance Program (LIHEAP) budget by almost half, and praise for continued funding for family caregivers under the Older Americans Act.”
NCOA is one resource for home equity and reverse mortgage counseling for seniors.
Written by Elizabeth Ecker