National Nonprofit Credit Counseling Agency Will Immediately Begin Qualifying Homeowners Hurt by Unemployment, Medical Issues
ATLANTA, June 20, 2011 /PRNewswire-USNewswire/ -- CredAbility, a national nonprofit credit counseling agency, has been selected by the U.S. Department of Housing and Urban Development (HUD) to accept applications from homeowners in 17 states for the new Emergency Homeowners' Loan Program (EHLP). This program will provide $1 billion to help an estimated 30,000 homeowners in 27 states and Puerto Rico avoid foreclosure. Homeowners can contact CredAbility today at www.CredAbility.org, or by calling 800.984.0979 to begin the qualification process. Applications will be available soon and will be accepted until July 22.
To apply for funds, homeowners must contact a nonprofit credit counseling organization approved by HUD. CredAbility has received approval to take applications from homeowners in the following states: New York, Massachusetts, Texas, Virginia, Wisconsin, Colorado, Washington, Oklahoma, Missouri, Minnesota, Louisiana, Arkansas, West Virginia, Iowa, Kansas, Utah and New Mexico.
EHLP was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act. It is designed to complement the Hardest Hit Fund by helping homeowners who have fallen behind on mortgage payments due to unemployment or large medical expenses bring their mortgage loan current and make future mortgage payments. Homeowners who meet certain criteria can apply to receive mortgage assistance for two years or up to $50,000, whichever comes first.
To be eligible for the program, homeowners must meet the following conditions:
- Involuntary unemployment or underemployment caused by adverse economic conditions or a medical emergency or serious injury;
- A minimum 15% reduction in income;
- A minimum three months delinquent on mortgage payments and at risk of foreclosure as of June 1, 2011. Homeowners must have a letter from their mortgage company verifying these conditions.
- A reasonable likelihood to resume full monthly mortgage payments by the end of the program's second year;
- Income must be less than 120% AMI (Area Median Income) or $75,000 or below;
- Income will be evaluated along with the income of anyone else on the mortgage note. Only the income of the persons on the mortgage note will be used to determine eligibility.
Qualified homeowners will receive a zero percent interest loan that covers the amount of mortgage payments past due on their primary residence. It will also pay 100 percent of the delinquent amount due to cover property taxes, mortgage and hazard insurance premiums, homeowner association fees and foreclosure-related fees. The loan does not have to be repaid, as long as the homeowner continues making mortgage payments on time for five years.
Applications must be received by July 22. After that date, applications will be reviewed by counseling agencies to determine which homeowners are eligible for the program. All homeowners who qualify will be notified before October 1.
CredAbility is one of the leading nonprofit credit counseling and education agencies in the United States, serving clients in all 50 states plus the District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands, in both English and Spanish. In addition, we provide in-person counseling through our branch network of more than 25 offices located across the southeast.
Founded in 1964, CredAbility is a family of Consumer Credit Counseling Service agencies that includes CCCS of Greater Atlanta, CCCS of Central Florida and the Florida Gulf Coast, CCCS of Palm Beach County and the Treasure Coast, CCCS of East Tennessee, CCCS of Central Mississippi and CCCS of Upstate South Carolina.
The nonprofit agency is accredited by the Council on Accreditation and is a member of the Better Business Bureau and the National Foundation for Credit Counseling (NFCC). Governed by a community-based board of directors, CredAbility is funded by creditors, clients, individual donors and grants from foundations, businesses and government agencies. Service is provided by phone at 800.251.2227 and online at www.CredAbility.org.