Homeowners facing foreclosure on their primary residences may be eligible to receive an interest-free, forgivable loan worth up to $50,000 from Maryland’s Emergency Mortgage Assistance program. To receive the assistance, however, they must submit their applications by 4 p.m. September 16, 2011. The Baltimore Sun reported on September 5, 2011, that the federal government recently awarded Maryland an additional $5.5 million for its mortgage assistance program because of the state’s strong loan activity. Maryland’s program received nearly $40 million to start with when it launched in April.
The money is supposed to assist delinquent homeowners get current on housing payments and assist with future mortgage bills for as long as two years, with nearly 800 homeowners having been approved for loans. Raymond Skinner, secretary of the Maryland Department of Housing and Community Development, told the Sun that the state expects to make 1,260 loans with the extra money.
Skinner told the Sun that the average loan thus far is $33,000, but the high demand has also led to a high denial rate. The loans are awarded on a “first-come, first-served basis,” but applicants are cautioned to make sure they meet requirements such as an income that must have declined at least 15 percent or having received a foreclosure notice from a lender or loan servicer. Another restriction is that an applicant cannot be in bankruptcy.
If you miss the deadline or suffer rejection for one of these loans, filing for bankruptcy can help eliminate many of your bills while allowing you to reestablish credit for your future. Our Maryland bankruptcy attorney can answer all your questions regarding the Chapter 13 or Chapter 7 bankruptcy process, including the bankruptcy means test. You can take your first step toward a fresh start by contacting our office for a free initial phone consultation today.