Department of Housing and Community Development Offers Money to Homeowners to Avoid Foreclosure

Boston, MA – July 11, 2011 – (RealEstateRama) — On June 20, the Department of Housing and Community Development (HUD) made funding available to help homeowners avoid foreclosure. The funding program – the Emergency Homeowners’ Loan Program (EHLP) – will provide much-needed funds for homeowners who have lost their job or experienced an involuntary decline in income. Homeowners who have received a foreclosure notice may be eligible for a deferred payment loan that will allow them to pay loan arrearages, back taxes and up to 24 months of mortgage payments. The EHLP loans will be two-year, no interest, forgivable loans. Eligible families must make less than 120 percent of the median income.

“This is an important resource for homeowners in Boston,” Mayor Thomas M. Menino said. “We want to help homeowners who have lost their jobs keep their homes while they get back on their feet. As these loans will be in great demand, we need to get the word out to families in Boston. Those interested in this program should contact the Boston Home Center. We have worked hard to keep families in their homes and this is another tool that can help.”

Massachusetts has received $61 million in EHLP funding. Homeowners wishing to secure one of these loans must submit an application by July 22. As demand for these loans will most likely exceed the money available, a lottery will be held to choose which homeowners will receive funding. Applications can be obtained at the following non-profit organizations in Boston: Nuestra Comunidad, Urban Edge, Neighborhood of Affordable Housing (NOAH), Ecumenical Social Action Committee (ESAC) and Action for Boston Community Development (ABCD).

“For homeowners who have lost some or all of their income and have received a foreclosure notice, this is a golden opportunity,” David Price, Executive Director for Nuestra Comunidad, said. “The first step for these homeowners is to contact Nuestra or one of the other authorized nonprofit agencies to start the pre-application process. There is a very short window of time to apply – July 22nd is the deadline – the time to call or come in is now.”

Nuestra Comunidad operates a storefront Homeownership Center at 54 Warren Street in Roxbury’s Dudley Square. Counselors are available to help homeowners apply for the new emergency loan money. For more information about these loans, homeowners can also contact the City of Boston’s Home Center at 617-635-HOME.

Contact:
Mayor’s Press Office
Press.Office (at) cityofboston (dot) gov