HARRISBURG, Pa., Sept. 8, 2011 /PRNewswire/ -- Builders and Realtors® are teaming up to encourage homeowners facing foreclosure to apply for the Emergency Homeowners' Loan Program (EHLP). The deadline to apply for EHLP funds is September 16, according to the PA Housing Finance Agency (PHFA), which administers the program.
Pennsylvania received $105 million to aid homeowners facing foreclosure through the U.S. Department of Housing and Urban Development (HUD). This foreclosure prevention program is intended to help families in danger of losing their homes due to involuntary unemployment, under-employment or for medical reasons.
To date, PHFA has approved approximately $43 million in EHLP loans. After the deadline, Pennsylvania will lose access to any EHLP funding not committed to homeowners approved for the program.
"Unfortunately, many people aren't aware of the funds that are available for a limited time, so the PA Builders Association (PBA) and the PA Association of Realtors® (PAR) are spreading the word about the EHLP and the need to act quickly," said PBA President Ray Venema, owner of Susquehanna Builders, Inc. "We want to ensure that homeowners are getting the help they need during these difficult times."
"Our research has shown that 57 percent of those in foreclosure experienced a job loss in the 12 months prior to the foreclosure, while 47 percent had been hit by unexpected medical bills," according to PAR President Guy A. Matteo. "The Emergency Homeowners' Loan Program can help more Pennsylvania families stay in their homes after experiencing significant hardships."
To qualify for an EHLP loan, homeowners need to meet certain HUD requirements, including: their current gross income must be at least 15 percent lower than their pre-event income; they must be at least three payments delinquent on their mortgage; the property must be owner-occupied and be the homeowner's principal residence; and the property must be a single-family residence – either a one-to-four unit structure or condominium. The EHLP will offer homeowners a declining balance, deferred payment "bridge loan" of up to $50,000 that is forgiven if homeowners stay in their home for five years.
Pennsylvania residents should call PHFA at 800-342-2397 or visit www.phfa.org for details. Operators are available Monday through Friday during normal business hours.
Contact Scott Elliott
Office Phone: 717.780.3916
SOURCE PA Builders Association (PBA)