Struggling homeowners in Maryland received a boost earlier this month when the state received $40 million in federal aid to help homeowners make their mortgage payments. The Emergency Homeowner Loan Program allows eligible borrowers to receive up to $50,000 in interest free loans to pay off past-due amounts and make up to two years of mortgage payments. The program’s goal is to help homeowners facing foreclosure due to job loss, illness or decrease in wages.
In order to be eligible for the mortgage payment assistance, borrowers must have sustained an income loss of at least 15 percent, be three to 12 months behind on their payments and have a “reasonable likelihood” of financial recovery. In addition, homeowners are required to meet with a Maryland nonprofit housing counselor.
The Emergency Homeowner Loan Program is the result of legislation last July and comes from the U.S. Department of Housing and Urban Development. The $1 billion in total aid only just now made its way to the states. Maryland’s Secretary of Housing and Community Development said the program will help homeowners who have lost their jobs through no fault of their own.
There are options if you are facing foreclosure in Maryland. Contact a Maryland bankruptcy lawyer to discuss how to save your home. A free initial phone consultation with an experienced Maryland bankruptcy attorney can help you keep your home.