Mortgage assistance funds available for Minnesota homeowners

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The Village Family Service Center was recently selected by NeighborWorks America in conjunction with the U.S. Department of Housing and Urban Development (HUD) to help promote and facilitate the Emergency Homeowners’ Loan Program (EHLP) in the states of North Dakota and Minnesota.

Congress provided $1 billion dollars to HUD, as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, to implement EHLP. The program will assist homeowners who have experienced a reduction in income and are at risk of foreclosure due to involuntary unemployment or underemployment, due to economic conditions or a medical condition.

Under EHLP guidelines eligible homeowners can qualify for an interest free loan which pays a portion of their monthly mortgage for up to two years, or up to $50,000.

“The Emergency Homeowners’ Loan Program will make it possible for struggling Minnesota and North Dakota homeowners to receive some much needed assistance in paying their mortgages,” says Joshua Huffman, housing counselor at The Village Family Service Center.

The EHLP program will pay a portion of a successful applicant’s monthly mortgage and homeowners can use the money for missed mortgage payments or past due charges including principal, interest, taxes, and insurance. EHLP is expected to aid as many as 30,000 distressed borrowers in the nation, with an average loan of approximately $35,000.

The U.S. Department of Housing and Urban Development anticipates a high amount of demand for the Emergency Homeowners' Loan Program (EHLP). In order to ensure that program funds are made available in a fair and impartial manner, homeowners interested in applying must first complete a Pre-Applicant Screening Worksheet. Homeowners whose completed worksheets meet the eligibility requirements will be randomly selected, and these homeowners will be invited to apply for an EHLP loan in the order they are selected.

For more information or to complete the Pre-Applicant Screening Worksheet, call The Village Family Service Center at 1-800-450-4019.

Tags: news, updates, mortgage, housing, foreclosure