Loan program making $105 million avaiilable to homeowners facing foreclosure
Fayette County homeowners facing foreclosure may be eligible for part of $105 million in aid available through the U.S. Department of Housing and Urban Development’s (HUD) Emergency Homeowner’s Loan Program (EHLP).
Representatives of the United Way of Westmoreland County were on hand Wednesday at the Holiday Inn, Uniontown, where they presented an overview of the program’s guidelines and funding that expires on Sept. 30.
Information on Southwestern Pennsylvania’s new 2-1-1 free resource hotline that connects people with community services was also unveiled to those attending that included representatives of various service agencies, banks, tax collectors and residents.
The hotline can also be called at 1-800-552-4171.
“As we know in Fayette County, we’re already struggling with high poverty and unemployement and a lot of challenges as far as job creation,” said James Stark, executive director of Fayette County Community Action Agency. “It’s important we get the word out about this program.”
The EHLP funds are available, first come, first served, to qualified homeowners who are three months delinquent on their first mortgage or current on their second mortgage and are in danger of foreclosure due to the unemployment, an involuntary reduction in work hours or a medical emergency.
The funds will offer homeowners a declining balance, deferred payment “bridge loan” for up to $50,000 and help those in danger of immient foreclosure with payment of arrearages, plus monthly payments up to two years on their mortgage principal, interest, insurance premium taxes and hazard insurance.
Application requirements also include a 15 percent reduction in income from such circumstances; currently at or below 120 percent of the area median income, which is $64,000 for Fayette and $75,000 for Westmoreland County, a reasonable likelihood of being able to resume payment of the first mortgage obligation within two years and also meet other housing expenses and debt obligations when the household regains full employment, owner occupied and principal residence or single family residence and able to provide a continuing loan.
Rita Masi, FCCAA project coordinator, reported that as of this month, 317 homes are in full foreclosure in Fayette County and 1,138 homes in Westmoreland County.
To date, Dana Bauer, vice president of community investments for Westmoreland County United Way, said seven loans have been processed totaling $197,00 in Fayette County and 24 loans in Westmoreland County at $776,000.
According to Stark, HUD has support programs and counseling agencies in place throughout the state ready to assist homeowners and renters that don’t qualify for EHLP, including community action.
For more information on EHLP, call 724-437-6050, extension 3247 or extension 3238.