Another new government program has just begun for homeowners on the brink of foreclosure. ELHP, or Emergency Homeowners’ Loan Program, provides a staggering $1 billion in FREE money for homeowners who are facing foreclosure due to job loss or unexpected medical expenses.
It gives these mortgage borrowers mortgage payment subsidies of up to $50,000 for no more than two years. Here’s an example from the Washington Post about Teri Ware, a single mom in Maryland whose daughter was born a year ago with a heart defect. Her daughter required 24-hour care, so Teri quit her job as a nurse, but soon was unable to keep up with her mortgage payment as well as all the medical bills.
Within a month, Ware was approved for $29,608 in aid through EHLP. The interest-free loan will repay $8,636 worth of mortgage payments that she owes in arrears to J.P. Morgan Chase and then pay about half her $1,727 mortgage payment for the next 24 months.
Ware was ecstatic when she found out. “I picked my daughter up and said, ‘We’re going to keep our home,'” she said with tears in her eyes. She plans to resume working and making mortgage payments on her own as soon as her daughter’s health improves.
And here’s the astounding part of EHLP: the loan will then be FORGIVEN over the next five years as long as borrowers stay in that home and keep up with the loan payments. Participants do not have to pay anything for this, ever. It’s like the government just became the fairy godmother for down and out homeowners, making all their wishes come true.
And that is exactly what some people do not like about this program – Rep. Jeb Hensarling (R-Tex.) has been against this initiative from the start. Back in February, he sponsored a bill to kill it, calling it “an act of fiscal child abuse.” Hensarling’s take on this program is that “the best foreclosure mitigation program in America is a job. It’s not a government check, it’s a paycheck.”
The government hopes to help 30,000 of the 1.8 homeowners nationwide facing foreclosure. It is available only in 27 states and candidates must apply before July 22.