If you’ve been hoping to enroll in the Emergency Homeowners Loan Program (EHLP), today is the last day to get pre-screened. Homeowners who are eligible could take advantage of an interest-free loan to help them avoid foreclosure.

About EHLP

EHLP provides troubled homeowners with a one-time, interest-free “bridge loan” that helps them become current on their overdue mortgage loan by giving them enough to make monthly mortgage payments (including principal, interest, taxes and insurance) for two years or up to the amount of $50,000.

What’s great about the loan is no payments will be due for five years as long as homeowners stay current on their mortgage payments and meet other requirements. After the five-year grace period, the balance will be reduced by 20 percent a year until no money is owed.

Also, a junior lien that is placed on the home at the time of the loan’s receipt will be eliminated.

Am I Eligible for the Emergency Homeowner Loan Program?

If you’re in a tough spot with your mortgage, it’s good to note that in order to qualify for this loan you must:

• Be involuntarily unemployed or underemployed after losing a job or suffering from a serious medical condition.
• Be at least 90 days delinquent on payments for your primary home.
• Have received a notice of foreclosure from your lender.
• Have income that dropped by at least 15 percent.
• Assume you will be able to resume home payments within two years.
• Meet the income eligibility, which in this case means your household income in 2009 was at or below $75,000 a year or 120 percent of the area median income for a household size of four.

Also, note that you must live in an eligible state that has not already received assistance from the Hardest Hit Fund.

Remember, today is the last day to get pre-screened for the loan. To find out more about the process and whether you qualify, visit the EHLP website.

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