Friday, August 13, 2010

HUD Earmarks $1B for Unemployed Borrowers

HUD just set aside $1 Billion for unemployed borrowers!

Help to unemployed borrowers would come in the form of a $50,000, ZERO interest loan to help make their house payments for up to 2 years.

Those receiving help must have a perfect payment history on their mortgage loan. 

A new $1-billion program led by the Department of Housing and Urban Development, or HUD, will help homeowners who are at risk of foreclosure due to involuntary unemployment, underemployment or a medical condition.

The program could be an asset to seniors who have been unable to pay their tax and insurance obligations on their reverse mortgage.  While there is no official number as to how many HECM borrowers are currently in T&I default, it continues to be a concern for lenders and servicers in the reverse mortgage industry.  Whether or not the program will be available to HECM borrowers isn’t yet clear.

Click here for an article which details the program: HUD Provides $1-billion-of-emergency-loans-to-homeowners

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