HARRISBURG, Pa., April 4, 2011 /PRNewswire-USNewswire/ -- Governor Tom Corbett today announced that Pennsylvania has been approved by the U.S. Department of Housing and Urban Development to receive $105 million to aid homeowners facing foreclosure through the Emergency Homeowners' Loan Program.
Administered by the Pennsylvania Housing Finance Agency, or PHFA, the Emergency Homeowners' Loan Program is intended to help families in danger of losing their homes due to involuntary unemployment, under-employment or for medical reasons.
"This funding will help Pennsylvania families under threat of foreclosure while also benefitting local economies by keeping more homes off the foreclosure rolls," said Governor Corbett. "These families will gain time to get back on their feet, and communities will benefit as their local home values remain stable."
The Emergency Homeowners' Loan Program will offer homeowners a declining balance, deferred payment "bridge loan" (non-recourse, subordinate loan with zero interest) for up to $50,000. It will help homeowners in danger of imminent foreclosure with payment of arrearages, plus up to 24 months of monthly payments on their mortgage principal, interest, mortgage insurance premiums, taxes, and hazard insurance.
Homeowners interested in the program must apply thru a PHFA Homeowners' Emergency Mortgage Assistance Program-approved counseling agency.
Pennsylvania residents should call PHFA at 1-800-342-2397 for a list of HEMAP-approved counseling agencies in their area. Operators will be available Monday through Friday during normal business hours.
Find information online at www.phfa.org/consumers/homeowners/ehlp.aspx.
PHFA works with a network of foreclosure counselors across the state who will assist EHLP applicants to identify steps they can take that may help them stay in their homes.
"PHFA has had its own successful homeowner foreclosure assistance program in place for 28 years, and we're proud that HUD used Pennsylvania's HEMAP as its model when developing this new foreclosure assistance program," said PHFA Executive Director and CEO Brian A. Hudson Sr. "We're ready to immediately begin fielding consumer calls about this new foreclosure assistance program and to put this funding to work helping Pennsylvania homeowners."
To qualify for the EHLP program, homeowners need to meet certain HUD requirements, including:
- They must have incurred a reduction in income due to involuntary unemployment, under-employment, or medical reasons. Current gross income must be at least 15 percent lower than pre-event income.
- The homeowner must be at least three payments delinquent on his or her mortgage.
- The homeowner must have a reasonable likelihood of being able to resume repayment of the first mortgage obligation within two years.
- The property must be owner-occupied and be the homeowner's principal residence.
Additional eligibility requirements will be explained to those homeowners who request information from PHFA and its partner counseling agencies.
The Pennsylvania Housing Finance Agency works to provide affordable homeownership and rental apartment options for older adults, lower- and moderate-income families, and people with special housing needs. Through its carefully managed mortgage programs and investments in multifamily housing developments, PHFA also promotes economic development across the state. Since its creation by the legislature in 1972, it has generated $10.1 billion of funding for nearly 144,000 single-family home mortgage loans and 83,000 rental units, while saving the homes of nearly 45,500 families from foreclosure. PHFA programs and operations are funded primarily by the sale of securities with the exception of its Homeowners' Emergency Mortgage Assistance Program, which it receives a state appropriation to administer. PHFA is governed by a 14-member board of directors.
For more information, visit www.phfa.org/consumers/homeowners/ehlp.aspx.
Scott Elliott, PHFA; 717-780-3916
Kirsten Page, Governor's Office; 717-783-1116
SOURCE Pennsylvania Office of the Governor